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DRAFT Project Number: 46059 Grant/Loan Number(s): ___; ___(ADF) September 2012

Lao People's Democratic Republic: Governance and Capacity Development in Public Sector Management Project

Project Administration Manual

CONTENTS ABBREVIATIONS

I. PROJECT DESCRIPTION 1

A. Rationale, Location and Beneficiaries 1 B. Project Outputs 1 C. Methodology 6

II. IMPLEMENTATION PLANS 6

A. Project Readiness Activities 6 B. Overall Project Implementation Plan 7

III. PROJECT MANAGEMENT ARRANGEMENTS 12

A. Project Implementation Organizations – Roles and Responsibilities 12 B. Key Persons Involved in Implementation 13 C. Project Organization Structure 14

IV. COSTS AND FINANCING 15

A. Detailed Cost Estimates by Expenditure Category 16 B. Allocation and Withdrawal of Grant Proceeds 17 C. Detailed Cost Estimates by Financier 18 D. Detailed Cost Estimates by Outputs/Components 19 E. Detailed Cost Estimates by Year 20 F. Contract and Disbursement S-curve 21 G. Fund Flow Diagram 22

V. FINANCIAL MANAGEMENT 23

A. Financial Management Assessment 23 B. Disbursement 23 C. Accounting 24 D. Auditing 25

VI. PROCUREMENT AND CONSULTING SERVICES 25

A. Procurement of Goods, Works and Consulting Services 25 B. Procurement Plan 26 C. Process Thresholds and ADB Review 26 D. 18-Month Procurement Plan 27 E. Indicative List of Packages Required under the Project 27 F. National Competitive Bidding 28 G. Consultant's Terms of Reference 30

VII. SAFEGUARDS 52

VIII. GENDER AND SOCIAL DIMENSIONS 53

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 54

A. Project Design and Monitoring Framework 54 B. Monitoring 54 C. Evaluation 54 D. Reporting 54 E. Stakeholder Communication Strategy 55

X. ANTICORRUPTION POLICY 56

XI. ACCOUNTABILITY MECHANISM 57

XII. RECORD OF PAM CHANGES 57

Project Administration Manual Purpose and Process

The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

The Ministry of Home Affairs (MOHA) as the executing agency for the project, Ministry of Finance (MOF), Ministry of Home Affairs (MOHA), Ministry of Planning and Investment (MPI), Ministry of Natural Resources and Management (MONRE), Ministry of Agriculture and Forestry (MAF), Ministry of Education and Sports (MOES), Ministry of Health (MOH) and National Commission for the Advancement of Women (NCAW) as the implementing agencies are wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by MOF, MOHA, MPI, MONRE, MAF, MOES, MOH, and NCAW of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

At Grant Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Grant1

agreement. Such agreement shall be reflected in the minutes of the Grant Negotiations. In the event of any discrepancy or contradiction between the PAM and the Grant Agreement, the provisions of the Grant Agreement shall prevail.

After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.

1 The name of the operational financing document may vary on a project to project basis; this reference

shall be deemed to encompass such variations, e.g., a Framework Financing Agreement, as applicable.

ABBREVIATIONS

ADB = Asian Development Bank ADF = Asian Development Fund AFS = audited financial statements CQS = consultant qualification selection DMF = design and monitoring framework EARF = environmental assessment and review framework EIA = environmental impact assessment EMP = environmental management plan ESMS = environmental and social management system GACAP = governance and anticorruption action plan GDP = gross domestic product ICB = international competitive bidding IEE = initial environmental examination IPP = indigenous people plan IPPF = indigenous people planning framework LAR = land acquisition and resettlement LIBOR MAF MOES MOF MOH MOHA MONRE MPI MCAW

= = = = = = = = =

London interbank offered rate Ministry of Agriculture and Forestry Ministry of Education and Sports Ministry of Finance Ministry of Health Ministry of Home Affairs Ministry of Natural Resources and Environment Ministry of Planning and Investment National Commission for Advancement of Women

NCB = national competitive bidding NGOs = nongovernment organizations PAI = project administration instructions PAM = project administration manual PIU = project implementation unit QBS = quality based selection QCBS = quality- and cost based selection RRP SAO

= =

report and recommendation of the President to the Board State Audit Organization

SBD = standard bidding documents SGIA = second generation imprest accounts SOE = statement of expenditure SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy TOR = terms of reference

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I. PROJECT DESCRIPTION

A. Rationale, Location and Beneficiaries

1. A capacity development grant has been formulated to support program implementation and delivery of key program outputs over the medium term. Program Implementation will require technical inputs and targeted on-the-job support to equip key government agencies in Lao PDR with the required knowledge and skills to ensure that the results of the reforms will be sustained, both at the central and subnational levels. Sequencing of the project activities will be appropriately coordinated and incorporated in the project administration manual. B. Project Outputs

2. The Governance and Capacity Development in Public Sector Management Project will have three components: (i) strengthening multi-year perspective in budget preparation, including polices to support intergovernmental financial arrangements; (ii) strengthening civil service management reforms and administrative capacity at all levels of administration, including support to the Commission for Advancement of Women (NCAW); and (iii) strengthening investment management capacity in the public sector for effective oversight of private sector investment in key sectors, including public–private partnership (PPP) arrangements (agriculture, education, and health). Component 1 - Strengthening multi-year perspective budget preparation, including policies to support intergovernmental financial arrangements 3. Specific focus will be on two outputs:

• Output 1. Further strengthening capacity to develop a medium term expenditure framework (MTEF) at the MOF level, and in selected sectors (health, education and agriculture), including level of allocations of subnational administrations.

• Output 2. Strengthening policies and systems of inter-governmental financial arrangement. Specific support will be: a) Review of intergovernmental fiscal transfers along two dimensions: (i) general

allocation/unconditional transfers and (ii) conditional transfers. b) Suggest policy recommendations for the establishment of unconditional equalization

grants. c) Simulate demand for designing transfers based on (i) population; (ii) area; (iii) and

equalization mechanism and discuss with relevant government counterparts. d) Propose setting up a formal body responsible for institutional coordination of

intergovernmental fiscal policy. e) Socialization and capacity building of the national and local administrations on the

new systems developed.

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Component 2 - Strengthening civil service reforms and administrative capacity at the national and subnational levels.

• Output 1 – Support to MOHA 4. The proposed support for the Ministry of Home Affairs (MOHA) will be anchored in the National Governance and Public Administration Reform Program, 2011–2015. The program guides the overall work of the government and its partners in developing an efficient and effective administration at all levels and improving service delivery. The project support to MOHA will focus on civil service policy, training, and capacity development in strengthening public sector management. Specific activities include:

a) Reviewing the draft civil service law, and support implementation of the civil service law over the medium-term building on resolutions, decrees, decisions, and instructions;

b) preparing background papers and undertake research; c) drafting of a civil service development master plan, and assist in implementation; d) awareness building of the civil service law and master plan; e) supporting MOHA and the Public Administration Research and Training Institute

selectively on gender sensitive human resource development focusing on national and subnational training and capacity development with a focus on training trainers in coordination with reputed training institutions;

f) analyzing training needs of civil servants in relation to the new MOHA decree on strengthening local administration in pilot districts, and develop a training package;

g) developing materials for generic district civil service training on financial management, gender sensitive human resource development and personnel management, and service delivery;

h) training on gender responsive public sector management. Training materials will include guidelines and practical tools/checklists for (i) gender analyses and planning: on how to address gender issues in sector specific service provision to ensure women’s equal access to and benefits from services; and (ii) gender responsive budgeting and gender impact analysis of budgets; (iii) and gender-specific and sex-disaggregated results. In addition, (iv) to ensure that at least 30% of trainees are female civil servant (as per guidelines stipulated in the draft Strategy for the Promotion of Gender Equality in the field of Public Administration; and

i) project management support.

• Output 2 – Support to NCAW 5. In addition, support will be provided to the National Commission for the Advancement of Women (NCAW) in strengthening their capacity on monitoring and reporting on NSAW targets in selected sectors. 6. The activities will build on lessons learnt and complement other capacity development support provided to Sub-Caw members by ADB and other development partners. The key activities include the following:

a) An assessment of the capacity of NCAW staff at the national level related to monitoring and reporting;

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b) Consultation with selected ministries e.g. MOES and MAF for their interest in collaborating with NCAW in setting up a MIS framework for monitoring NSAW targets for these sectors.(This activity may build on the ADB TA support provided to MAF, which is developing key gender indicators for the sector);

c) Selection of sectors/ ministries (a minimum of 2 sectors/ministries to be selected and ensure that there is no overlap with ongoing support to MAF and MPWT);

d) Review of NSAW targets and agreements with selected ministry personnel (personnel from Planning departments and DAW/ SubCAW members) on key targets or indicators to be measured. The selected indicators to be aligned with data / information/ indicators already collected or used by these ministries;

e) Agreement on a coordination mechanism for sharing data between selected ministry through planning department, DAW at the ministry and NCAW;

f) Development of training materials on gender issues in the sectors selected, analysis of data, and setting up a MIS system;

g) Training of NCAW, DAW and Planning staff of selected ministries on the above training materials;

h) Support to NCAW M&E and Planning staff to set up the MIS system; i) Training of NCAW and DAW of selected Ministries on reporting on data; j) Possibilities explored for institutionalizing training materials and modules within a

government training institute – this may be undertaken at an earlier stage to provide training to NCAW and DAW;

k) Print materials related to guidelines and checklists on M&E.

Component 3 - Improvements in investment management capacity

• Output 1. Investment management capacity strengthened to enforce and monitor private sector investments in agriculture (state land lease and concession agreements)

7. Since 2001, the government has formulated policies and strategies to promote agriculture land and natural resources sector as one of the engines of economic growth and development. Such a strategy envisages large-scale capital investment. Since then, the natural resources subsector has expanded significantly. Inadequate institutional capacity however undermines efficient management of contract agreements and concession agreements. These exacerbate the risks of negative impact of these investments against intended outcomes. Institutions need to be strengthened and capacity built to screen, award, monitor, and exercise effective national and local oversight. Key areas of support include the following:

a) Support an institutional assessment of the current procedures and criteria for implementing the award of state land leases and concessions. Assessment will include an overview of the institutional mandate of various agencies,2

2 The Ministry of Planning and Investment (MPI) is the lead agency in the process of approving concession business,

is responsible for the inclusion of inputs from all relevant stakeholder sectors in the decision-making process, and issues the concession registration certificates. Ministry of Natural Resources and Environment (MONRE) is technically responsible for approving all land concessions except mining concessions, with prior consent from MPI; Ministry of Agriculture and Forestry (MAF) for approving land concessions regarding agriculture and forestry; Ministry of Industry and Commerce (MOIC) for approving land concessions regarding industrial plants and farms; and Ministry of Energy and Mines (MOEM) for approving concessions regarding mining, plus corresponding administrative authorities.

general requirements and principles included in the legal documents: the Decree on State Land Lease or Concession, No. 135/PM, 25/05/2009; Law on Investment Promotion

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(2009); Decree on the Implementation of the Land Law, No. 88/PM, (03/06/2008); Forestry Law (2007); Decree on Compensation and Resettlement No. 192/PM (07/07/2005); Law on the Promotion of Foreign Investment (2004); Land Law (2003); Law on Agriculture (1998); Law on Mining (1997); and Decree on State Land Lease or Concession, No. 135/PM.

b) Provide capacity building to effectively screen investment proposals concerning (a) issues of compensation (Decree 192/PM); (b) resettlement and compensation process (technical guidelines on compensation and resettlement in development projects and Decree 192/PM); (c) issues relating to land conflicts relating to state land leases or concessions (Land Law, Decree 88/PM, Decree 135/PM; (d) concession fees (Land Law, Decree 135/PM; (e) land management and monitoring (Decree 88/PM, on implementation of the land law); and (f) terms of state land leases and concessions (Decree 135/PM).

c) Support contract management and enforcement of contracts, including monitoring and supervision arrangements and reporting to ensure adequate oversight. Focus will be on the contracting process: pre-investment process, contract management, monitoring, and enforcement. Training on the pre-investment process will be provided to align contracts and procedures, sharing international best practices in investment decision-making, and identifying contractual clauses to increase effectiveness of monitoring and enforcement through pilot case studies. Contract management, monitoring, and enforcement will focus on contract drafting with emphasis on (a) clarity of enforceable obligations for investors, (b) requirements regarding monitoring contractual obligations, (c) clarity of sanctions for breaches, (d) managing unforeseen circumstances, (e) procedures for dispute resolution related to the contract or project activities, and (f) termination and assignment clauses.

d) Include training focus on (a) model contract within the wider context of the strategic vision of the Agriculture Development Strategy and Natural Resources and Environment Sector Plan, 2011–2015 and the associated action plan; (b) negotiation skills training; and (c) financial appraisal training.

e) Utilize training to identify and suggest proper project documentation. f) Assist in providing advice on legal contradictions and legal hierarchy in the

application of the Law on Investment Promotion (Article 28) and Decree 135/Pm and Land Law (Articles 65), especially relating to duration of state land leases and concessions.

• Output 2. Public – Private Partnership Arrangements

8. The government is studying PPP models to meet the funding gap for financing the Socio‐Economic Development Plan, 2011–2015. The health and education sectors have significant problems with resource shortfall and have unmet demands for effective and equitable service delivery. The government is increasingly looking to the private sector and domestic and foreign investments. However, the enabling legal, policy, and regulatory frameworks remain underdeveloped, not conducive, or weakly applied. The government has not fully identified a framework for PPP to solve larger problems in care delivery and well-being (health), and of technical and vocational education. The government has requested ADB support for kick-starting the PPP process. Given that PPP is a new concept in the country, support will be required through technical assistance for (i) establishing the required enabling environment - policy, legal, and regulatory, (ii) providing institutional capacity development within the focal ministry entrusted with the task of driving the PPP agenda as well in the sector ministries responsible for developing and implementing PPP; and (iii) helping carry out the project

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development process from identification to bidding out a couple of pilot projects in health, education, and agriculture. The support will include a sufficient number of workshops to disseminate information and knowledge to the government agencies as well as to the private sector, and finance a study tour to one of the countries in the subcontinent with good experience in PPP development. A separate allocation is proposed to help the line agencies carry project development work for selected projects. ADB proposes to allocate $500,000 to support these activities, which will be tied to the policy actions to be agreed upon under the program. 9. Specific project activities involving the Ministry of Planning and Investment (MPI) will include the following:

a) developing a policy framework on PPP for the whole country; b) supporting MPI and work together to draft a decree for PPP; c) drafting the implementing regulations; d) helping to establish the appropriate institutional framework—a central PPP unit within

MPI; e) providing PPP units (within MPI) with templates and manuals; f) supporting project preparation across sectors, not confined only to health and

education; g) supporting study tours; and h) building capacity

10. Activities involving the Ministry of Education and Sports and the Ministry of Health will include:

a) supporting PPP initiatives in health and education and build awareness in coordination with the Lao PDR Resident Mission and sector divisions;

b) supporting a rapid assessment of PPP potential in the education and health sectors, including identifying barriers to engaging with the private sector, and supporting strategy development and program design that will help the Ministry of Health (MOH) and Ministry of Education and Sports (MOES) to design PPPs;

c) sharing international experience in developing the education and health sector through PPP modalities;

d) ensuring the assessment builds on regional and international best practices; e) providing technical assistance in building political support to work with the private

sector among MOH and MOES staff, other government officials from MPI, the Ministry of Finance, Ministry of Trade and Industry, and development partners; and

f) providing technical assistance to identify and develop some bankable PPP models, initially as pilots to serve as models for replication across sectors. Initial pilot projects should serve as demonstration models to strengthen local government capacity to structure PPP activities.

11. The following actions will be undertaken in the PPP project preparation process:

a) PPP implementing guidelines will include guidelines for due diligence on gender and social aspects.

b) gender assessments/ analysis will be undertaken in every project to ensure that gender issues are integrated and that project benefits are maximized for women and men through the preparation of gender action plans, wherever appropriate.

c) the design for individual project will include a social/gender specialist / consultant in the project team to ensure due diligence on gender, to train all staff at PPP unit on

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gender issues in the key priority sectors, gender assessments, mitigation measures and other social risks.

C. Methodology

12. As requested, types of assistance under the proposed program will be in the form of inputs such as (i) engagement of international and national consultants with relevant competencies in core areas of support, (ii) visits by experts and long-term mentor support, (iii) seminars, conferences, and pre-feasibility studies for bankable PPP projects, (iv) formal training and other workshops within the Lao PDR and other ADB member countries, subject to available resources. The provision of materials and equipment, including computer hardware and software for project management, will be considered.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Months (Jan-Dec2012)

Indicative Activities 1 2 3 4 5 6 7 8 9 10 11 12 Who is responsible

Advance contracting actions Not applicable

Retroactive financing actions Not applicable

Establish project implementation

arrangements

X EAs and IAs

ADB Board approval X ADB U

Grant signing X LRM, EA/IA

Government legal opinion provided X MOF, LRM

Government budget inclusion X MOF

Grant effectiveness x ADB U, OGC

ADB U=Asian Development Bank supervising unit ; OGC=Office of General Counsel; LRM=Lao Resident Mission; MOF=Ministry of Finance; MOHA=Ministry of Home Affairs

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B. Overall Project Implementation Plan

Activities a 2013 (Qtr) 2014 (Qtr) 2015 (Qtr) 2016 (Qtr) Note: Activities are only indicative, and will be finalized during the implementation phase by the EA and IAs

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 A. Component 1 Financial management strengthened

Activity 1 Assessment of fiscal planning, budgeting, expenditure allocation processes

Activity 2 Action plan for capacity building

Activity 3 Strengthening capacity to develop a medium term expenditure framework (MTEF) at the MOF level, including allocations to sub national level

Activity 4 Strengthening capacity to develop a medium term expenditure framework (MTEF) at the level of agriculture, education and health sectors

Activity 5 Undertake an assessment of policies and systems of inter-governmental financial arrangement.

Activity 5.1 Review of intergovernmental fiscal transfers along two dimensions: (i) general allocation/unconditional transfers and (ii) conditional transfers.

Activity 5.2 Suggest policy recommendations for the

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 establishment of unconditional equalization grants. Activity 5.3 Simulate demand for designing transfers based on (i) population; (ii) area; (iii) and equalization mechanism and discuss with relevant government counterparts.

Activity 5.4 Propose setting up a formal body responsible for institutional coordination of intergovernmental fiscal policy.

Activity 5.5 Socialization and capacity building of the national and local administrations on the new systems developed.

Activity 5.6 Review of intergovernmental fiscal transfers along two dimensions: (i) general allocation/unconditional transfers and (ii) conditional transfers.

B.Component 2 Civil service reforms and administrative capacity strengthened at the central and sub national levels

Activity 1 Review Draft civil service law

Activity 2 Implementation of civil service law

Activity 3 Draft resolutions, decrees, decisions and instructions

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Activity 4 Draft Civil Service Master Plan

Activity 5 Undertake a Training Needs Analysis and develop Training Curriculum and Training Materials

Activity 6 Support MOHA and PARTI to undertake capacity building activities, including gender responsive public sector management

Activity 7 Strengthening NCAW in strengthening on monitoring and reporting on NSAW targets in selected sectors.

C. Component 3 Investment management capacity strengthened for the public sector Activities 1 -5 concerns state land leases and concessions Activities 5 – 7 concern PPPs

Activity 1 Institutional assessment of the current practice and criteria on award of land lease and concessions

Activity 2 Formulate a capacity building plan and provide training

Activity 3 Undertake trainings/workshops

Activity 4 Prepare manuals, guidance

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 notes, etc Activity 5 Develop a policy framework and set of principles for the Government

Activity 6 Develop a structured step by step approach for promoting PPP especially for the social sector. This will include the following: - MPI, MOH and MOES Identify the required incentives and government support for promoting PPPs in coordination with MOF. - Government strengthens institutional capacity with clear mandate, and sets up PPP units (to include social and gender expertise) in MPI as well as in Education and Health Ministry. - MPI, MOH and MOES conduct preparatory work on project development for pilot projects in the social sectors (including social and gender assessments). - Guidelines will include checklists for social/gender analysis and recommendations for developing gender action plans, as required.

Activity 7 Develop PPP policy manual

Management Activities Procurement plan key activities to procure contract packages

Advance contracting for

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 consulting services Environment management plan key activities

Communication strategy key activities

Annual/Mid-term review Project completion report

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities

Project implementation organizations

Management Roles and Responsibilities

• Executing agency

(MOHA) Responsible for overall administration,

supervision and project implementation Responsible for monitoring, evaluation,

coordination of project Support both Government and ADB

reporting requirements Carry out administrative and fiduciary

support Prepare withdrawal applications based

on request/s from IAs and endorse the same to MOF before submission to ADB

Review and approval authority for procurement activities, consultancy requirements and other activities

Review and approve budget and work plan proposals

Responsible for maintaining and keeping records for the imprest account including monitoring of project costs balances

Responsible for monitoring the two sub-accounts to be maintained by MOF and MPI

• Project Steering Committee within EA

Monitor and review project progress Provide guidance and direction to the

EA, IAs and the relevant line ministries on Project implementation

• Project Management

Unit for each Component

Responsible for preparing the work plan and budget plan or projections

(only for Component 1 and 3) Responsible for maintaining the sub-account and keeping records for the sub-accounts

Responsible for preparing requests for payment and its required documentation for activities undertaken and to be undertaken under the project

Responsible for logistical arrangements for meetings, conferences, workshops, trainings, study tours

• Implementing Carry out the activities under the project

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Agencies (MOF, MOHA, MPI, MOH, MOES, MONRE, MAF, NCAW)

Responsible for procurement activities and selection/administration of consultants

Undertake trainings/workshops/studies Provide inputs for quarterly reports and

project completion report

• ADB Support implementation including

compliance by executing agencies and implementing agencies of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

Review all documents that require ADB approval

Conducts semi-annual, mid-term review and project completion mission, and other missions as needed

Timely processing of withdrawal applications

B. Key Persons Involved in Implementation

Executing Agency Ministry of Home Affairs (MOHA) Mr. Nisith Keopanya

Director General, Planning and Cooperation Department Ministry of Home Affairs (MOHA) Telephone :+856 30 9930083 Fax :+856 21 213649

Office Address : Vientiane, Lao PDR Email address: [email protected]

ADB

Division Director Ms. Shigeko Hattori Director Public Management, Financial Sector and Trade Division (SEPF), Southeast Asian Department Telephone No.: 632 6326455 (local) 6324037 (direct) Email address: [email protected]

Mission Leader Mr. Prasanna K. Jena Senior Public Management Specialist Public Management, Financial Sector and Trade Division (SEPF), Southeast Asian Department Telephone No.: 632 6326657 (local) 6326424 (direct) Email address: [email protected]

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C. Project Organization Structure

13. The MOHA is the executing agency (EA) for the project. The EA is responsible for overall administration, supervision and project implementation. The EA is also responsible for the following: (i) monitoring, evaluation, coordination of project; (ii) support both Government and ADB reporting requirements by preparing quarterly and completion reports; (iii) carry out administrative and fiduciary support; (iv) prepare withdrawal applications based on request/s from IAs and endorse the same to MOF before submission to ADB; (v) review and approve procurement activities and consultancy requirements by the IAs; (vi) review and approve budget and work plan proposals; (vii) maintain and keep records for the imprest account including monitoring of project costs balances; and (viii) monitor the two sub-accounts. The existing Programme Board of the National Governance and Public Administration Reform Program (NGPAR) will act as the project steering committee (PSC)1

1 The coordination and program management structures established by the Government for its National Governance

and Public Administration Reform Program (NGPAR) shall be used to facilitate implementation of the Program. Programme Board of NGPAR will be chaired by the Vice Minister of Ministry of Home Affairs and the members of the Programme Board from the government would be of the level of Director General or equivalent, from the relevant ministries and agencies. Programme Board is the highest administrative level in the NGPAR structure. The other agencies not earlier represented in the existing Programme Board under NGPAR will become part of the Programme Board for purposes of this Project Grant, i.e. MONRE, MAF, MPI, MOH.

. This is chaired by Vice Minister of MOHA with representative from each IA as members. It is tasked primarily to: (i) monitor and review progress of the Project; (ii) and provide guidance and direction to the EA, IAs and the

MOF

Project Steering Committee

(within MOHA)

Project Management

Unit Compo 2 ( MOHA)

Project Management Unit Compo 3

(MPI) Project Management

Unit Compo 1

(MOF)

Executing Agency (MOHA)

MOHA

MPI

MONRE

MOES

MOH NCAW

MAF

To be assisted by a project coordinator

To be assisted by

a project coordinator

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relevant line ministries on project implementation. A project management unit (PMU) will be established for each component. The tasks are the following: (i) prepare work plan and budget plan or projections; (ii) maintain and keep records for the sub-accounts; (iii) prepare requests for payment and its required documentation for activities undertaken and to be undertaken under the project and (iv) perform logistical arrangements for meetings, conferences, workshops, trainings, study tours, including collating documentation requirements as required. The implementing agencies (MOF, MOHA, MPI, NCAW, MONRE, MOES, MOH, MAF) will carry out activities under the project, including but not limited to the following: (i) procurement activities; (ii) selection and administration of consultants; (iii) undertake trainings, workshops, meetings, studies; and (iv) provide inputs for quarterly reports and project completion report. The project organization structure is shown above.

IV. COSTS AND FINANCING 14. Tentative financing plan for GDCP project grant is shown in Table 1 below. The project is estimated to cost $6.50 million equivalent. This includes ADB contribution of $6.0 million equivalent from the Asian Development Fund (ADF) and Government contribution of $0.50 million equivalent in kind for office accommodation, counterpart staff salaries, facilities, and other support. The cost estimates are summarized in Table A below.

Table 1. Tentative Financing Plan

Source Amount ($ million) Share of Total(%) Asian Development Bank: 6.00 92.31 Project Grant (ADF) Governmenta 0.50 7.69 Total 6.50 100.00 Source: ADB estimates

a In kind.

A. Project Investment Plan

Component Total Costa A. Base Cost 1. Consultants 3,320,420.00

2. Equipment/Vehicle b 290,000.00

3. Trainings/Workshops c 795,000.00

4. Surveys/Studies d 1,040,000.00

5. Project Management Support e 190,000.00

500,000.00 690,000.00 Subtotal (A) 6,135,420.00

B. Contingencies f 364,580.00 Subtotal (B) 364,580.00 Total (A+B) 6,500,000.00 Source: Asian Development Bank estimates. a This Includes applicable taxes and duties imposed within Lao, and bank charges to be financed from ADB grant

resources amounting to about $0.50 million . The basis for this financing of taxes and duties is CPS Lao PDR 2012-2016. The amount of taxes and duties (a) is within the reasonable threshold identified in the CPS (b) does not represent an excessive share of the Project Investment Plan (c) only apply with respect to ADB-financed

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expenditures (d) the financing of such taxes and duties is material and relevant to the success of the Project. b Includes computers and peripherals, printers, photocopy machines, LCD projectors, computer software and

vehicle for EA for travel outside Vientiane. c Provision for training/seminars and study tours which include cost for translation, per diem and travel expenses

for trainees/participants, workshop cost, venue, communication and other related workshop costs. d This includes provision for pre-feasibility study to be undertaken under the PPP Component. e Project Management Support costs include costs for contract negotiations, preparation of report,

communications, translation/interpretation, transportation, insurance costs etc. These costs will be financed by the ADB Project Grant. Government contribution will be in kind for office accommodation, counterpart staff, salaries, meeting facilities and others initially estimated at $0.5million.

f Contingencies at approximately at 10% for base costs.

A. Detailed Cost Estimates by Expenditure Category

($'000)

Item Foreign

Exchange Local

Currency Total Costs

% of Total Base Cost

A. Investment Costs

1 Consultants

3,320,420

-

3,320,420

54.12

2 Equipment/Vehicle a

290,000

-

290,000

4.73

3 Trainings/Workshops

795,000

-

795,000

12.96

4 Surveys/Studies

1,040,000

1,040,000

16.95

5 Project Management Support Costs

-

-

-

-

a. ADB Financing b

190,000

-

190,000

3.10

b. Government Financing c

500,000

-

500,000

8.15

Subtotal (A)

6,135,420

-

6,135,420

100.00

Total Base Cost

6,135,420

6,135,420 B. Contingencies d

1 Physical

364,580

-

364,580

100.00

Subtotal (B)

364,580

-

364,580

Total Project Costs (A+B)

6,500,000

-

6,500,000

-

Source: Asian Development Bank estimates a Equipment under component 1 include: laptop and peripherals, photocopier; Equipment under component 2

include: laptop and peripherals, software, photocopier, LCD projector. b Project management support costs include miscellaneous project administration costs such as photocopying of

training materials, printing of relevant reports, stationeries, translation services, project related travel cost for PMU staff outside Vientiane, transportation and insurance costs, communications costs etc. essential for effective project implementation and linked to specific project activities.

c Government financing is contribution in kind for office accommodation, counterpart staff, salaries, meeting facilities and others.

d Computed at about 10% of total grant amount.

17

B. Allocation and Withdrawal of Grant Proceeds

ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS

(Governance and Capacity Building for Public Sector Management Project)

Number

Item

Total Amount Allocated for ADB Financing Basis for Withdrawal from the

Grant Account ($) Category Subcategory

1 Consultants 3,320,420

1A Component 1 1,036,400

100 percent of total expenditure claimed

1B Component 2 1,146,640


1C Component 3 1,137,380 100 percent of total expenditure claimed

2 Equipment/Vehicle 290,000

2A Component 1 30,000


2B Component 2 230,000


2C Component 3 30,000


3 Trainings/Workshop 795,000

3A Component 1 45,000 100 percent of total expenditure claimed

3B Component 2 650,000 100 percent of total expenditure claimed

3C Component 3 100,000 100 percent of total expenditure claimed

4 Surveys/Studies 1,040,000


4B Component 3 1,000,000 100 percent of total expenditure claimed

5 Project Management Support 190,000


5B Component 2 75,000 100 percent of total expenditure claimed

5C Component 3 75,000 100 percent of total expenditure claimed

6 Unallocated 364,580

Total 6,000,000

18

C. Detailed Cost Estimates by Financier Detailed Cost Estimates by Financier

ADB Govt b

Amount

% of Cost

Category Amount

% of Cost

Category Total Cost

A. Investment Costs a

1 Consultants

3,320,420

-

Component 1

1,036,400

100.00

1,036,400

Component 2

1,146,640

100.00

1,146,640

Component 3

1,137,380

100.00

1,137,380

2 Equipment/Vehicle

290,000

-

Component 1

30,000

100.00

30,000

Component 2

230,000

100.00

230,000

Component 3

30,000

100.00

30,000


795,000

-

Component 1

45,000

100.00

45,000

Component 2

650,000

100.00

650,000

Component 3

100,000

100.00

100,000

4 Surveys/Studies

1,040,000

Component 2

40,000

100.00

40,000

Component 3

1,000,000

100.00

1,000,000

5 Project Management Support Costs

190,000

ADB Component 1

40,000

100.00

40,000

ADB Component 2

75,000

100.00

75,000

ADB Component 3

75,000

100.00

75,000

Government

500,000

100.00

Subtotal (A)

5,635,420

500,000

5,635,420

Total Base Cost

5,635,420

500,000

5,635,420 B. Contingencies

1 Physical

364,580

100.00

-

364,580

Subtotal (B)

364,580

-

364,580


6,000,000 -

500,000 -

6,500,000 a Includes taxes and duties imposed within Lao to be financed from ADB grant resources. b Government contribution is in kind.

19

D. Detailed Cost Estimates by Outputs/Components

Detailed Cost Estimates by Outputs/Components Component 1 Component 2 Component 3

Item Total Cost Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category A. Investment Costsa

1 Consultantsb

1,036,400

78.63

1,146,640

49.67

1,137,380

45.33

2 Equipment/Vehiclec

30,000

2.28

230,000

9.96

30,000

1.20


45,000

3.41

650,000

28.16

100,000

3.99

4 Surveys/Studiesd

-

-

40,000

1.73

1,000,000

39.86

5 Project Management Support

-

-

-

-

-

-

a. ADB Financing

40,000

3.03

75,000

3.25

75,000

2.99

b. Government financinge

166,667

12.64

166,667

7.22

166,667

6.64

Subtotal (A)

6,135,420

1,318,067

100.00

2,308,307

100.00

2,509,047

100.00

Total Base Cost

1,318,067

2,308,307


1 Physical

80,000

100

159,000

100.00

125,580

100.00

Subtotal (B)

364,580

80,000

100

159,000

100.00

125,580

100.00


6,500,000

Source: ADB estimates a In mid-2012 prices. b MOHA’s request for 2 international gender specialists and 1 national gender specialist will be considered subject to availability of budget. c MONRE’s request for laptop, desktop, printers, photocopier, LCD projector will be considered subject to availability of budget. d MONRE’s request for study tour will be considered subject to available of budget. e In kind.

20

E. Detailed Cost Estimates by Year

Detailed Cost Estimates by Year

Item Total Cost Year 1 Year 2 Year 3 Year 4 A. Investment Costs

1 Consultants

3,320,420

573,320

573,320

1,036,400

1,137,380

2 Equipment/Vehicle

290,000

-

30,000

230,000

30,000


795,000

45,000

100,000

325,000

325,000

4 Surveys/Studies

1,040,000

-

40,000

500,000

500,000

5 Project Management Support

-

-

-

-

a. ADB financing

190,000

40,000

75,000

37,500

37,500

b. Government financing

500,000

125,000

125,000

125,000

125,000

Subtotal (A)

6,135,420

783,320

943,320

2,253,900

2,154,880

Total Base Cost

6,135,420

783,320

943,320

2,253,900


1 Physical

364,580

159,000

80,000

62,790

62,790

Subtotal (B)

364,580

159,000

80,000

62,790

62,790


6,500,000

21

F. Contract and Disbursement S-curve

15. The project implementation period will be from January 2013 to 31 July 2016. Project expenditures will be disbursed throughout this period following the S-curve below:

22

G. Fund Flow Diagram

16. Funds flow from ADB to an imprest account and from ADB directly to suppliers and contractors under the direct payment. An imprest account will be opened in the name of the Project and maintained by the EA for the exclusive use of project expenditures. The EA administers the project, including financial management and reports. All withdrawal applications will go through the Ministry of Finance (MOF) for endorsement. Based on the approved work plan and budget plan for each IA, activities to be undertaken by them will follow either the imprest account or the direct payment procedure. For direct payment procedure, PMU collects invoices from suppliers or contractors; prepares payment requests and its documentation and submits the same to EA for approval. ADB then pays directly to supplier or contractor’s account. Direct payment is suggested for large transactions. When the imprest account is established, the MOF and MPI may open and maintain a separate sub-account for urgent transaction requirements. Following the imprest payment procedure, the PMU for component 1 and 3 prepares and submits payment requests and its documentation for EA’s approval; then funds are transferred to the sub-account. Replenishment/liquidation of the imprest account for the project will be made by the EA thru withdrawal application/s endorsed by MOF for submission to ADB.

Consultants

Equipment/

Vehicle Supplier/s

Workshop/

Training Supplier/s

Surveys/ Studies

Sub- Account 1 Managed by MOF

ADB

Executing Agency Imprest Account

for the Project Managed by MOHA

Ministry of Finance

IAs under Component 2

(MOHA, NCAW)


(MPI, MOH, MOES, MONRE,

MAF)

Project

Management Costs

Equipment

Training

Workshop

Survey/Studies

Initial Advance/

Replenishments-->

Direct Payment Procedure -->

Imprest Payment Procedure -->


(MOF)

Sub- Account 2 Managed by MPI

23

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

17. The purpose of the Financial Management Assessment (FMA) was to review and assess the EA‘s financial management including financial reporting, accounting, auditing and internal control, disbursement, and cash flow management arrangements. The assessment focused on adequacy of management of project transactions, regular record and reliable financial statements, update on asset inventory and financial audit management. ADB‘s Financial Management Assessment Questionnaire (FMQ), disbursement handbook, and the Guidelines for the Financial Governance and Management of Project were used. A financial management assessment was undertaken for this project during the fact-finding mission. The assessment showed that the EA’s financial management capacity is improving and with training and guidance, and also of the experience of dealing with development partner’s projects (MOHA has administered a number of projects supported by other funding agencies in particular UNDP), will be able to manage this project financially. 18. In addition, an assessment was also undertaken on the EA’s procurement capacity during the fact-finding mission. Based on the assessment, EA’s procurement capacity is constantly improving, and is able to deal with the requirements and procedures of UNDP and other development partners with whom MOHA is dealing. There are established arrangements being followed in handling stages of procurement.4

At EA level, control and checking processes are also in place. Overall, the general ratings are as follows: rated low risk for organization and staff capacity, information management and procurement practices, but it was is rated medium risk on effectiveness and accountability measures. To further improve on EAs and IAs capacity, it was proposed that counterpart staff will undertake training on ADB project implementation i.e. disbursement and procurement, and other project-related communications with ADB. MOHA will also be assisted by a project coordinator to be engaged under the project experienced in ADB procurement and disbursement procedures.

B. Disbursement

19. The grant proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time),5

and detailed arrangements agreed upon between the Government and ADB.

20. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),6

ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5) to subprojects financed by ADB.

21. The ADB grant proceeds will be disbursed using the imprest fund procedure to facilitate more efficient disbursement of grant proceeds and the direct payment procedure, as the case may be. The Executing Agency may open, for the exclusive use of the project, a separate bank account for depositing advances - the imprest account, administered by the PMU in MOHA. The imprest account shall be maintained in current account only in US dollars and opened in the

4 Ministry of Finance handles large procurement activities. 5 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf. 6 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf

http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf�

http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf�

24

name of the Project. The ceiling of the imprest account maintained by the EA is $200,000.00. The EA may request for initial and additional advances to the imprest account based on 6 months estimated expenditures to be financed through the account. The request for initial advance to the imprest account should be accompanied by an Estimate of Expenditure Sheet7 setting out the estimated expenditures for the forthcoming six (6) months of project implementation, and submission of evidence satisfactory to ADB that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest account, the Recipient will furnish to ADB (a) Statement of Account (Bank Statement) where the imprest account is maintained, (b) the Imprest Account Reconciliation Statement (IARS)8

reconciling the above mentioned bank statement against the EA’s records.

22. ADB's statement of expenditures (SOE)9 procedure may be used for reimbursement and liquidation/replenishment of the imprest account. The SOE ceiling shall be $50,000 per individual payment. Liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. Separate sub-accounts (2) may be established by the PMUs (2) within MOF and MPI, to meet urgent transaction requirements by the IAs under components 1 and 3. The EA and IAs should ensure that every liquidation and replenishment of each sub-account is supported by the (i) Statement of Account (Bank Statement) prepared by the bank where the sub-account is maintained and (ii) Sub-account Reconciliation Statement10

. These supporting documents should be retained by the EA and made available to ADB upon request.

23. Before the submission of the first withdrawal application, the government should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the Recipient, together with the authenticated specimen signatures of each authorized person11

. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. EA’s PMU is to consolidate claims to meet this limit for reimbursement and imprest account claims. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing.

24. The EA PMU will be responsible for (i) preparing disbursement projections, (ii) requesting budgetary allocations for counterpart funds, (iii) collecting supporting documents, and (iv) preparing and sending withdrawal applications to be endorsed by the EA to MOF (through External Finance Department) before submission to ADB. C. Accounting

25. The PMUs will maintain separate project account and record by funding source for all expenditures incurred on the Project. Project account will follow international accounting

7 Available in Appendix 10B of the Loan Disbursement Handbook 8 Available in Appendix 10C of the Loan Disbursement Handbook 9 SOE forms are available in Appendix 9B of the Loan Disbursement Handbook 10 Available in Appendix 10D of the Loan Disbursement Handbook 11 Available in Appendix 4B of the Loan Disbursement Handbook

25

principles and practices or those prescribed by the Government's accounting laws and regulations.12

D. Auditing 26. The EA will cause the detailed consolidated project financial statements to be audited in accordance with International Standards on Auditing Standards and in accordance with the Government’s audit regulations by an auditor acceptable to ADB. The audited accounts will be submitted in the English language to ADB within 6 months of the end of the fiscal year by the executing agency. The annual audit report will include a separate audit opinion on the use of the imprest fund and the SOE procedure, as applicable. The Government, EAs and IAs have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. For revenue generating projects only, ADB requires audited financial statements (AFS) for each executing and/or implementation agency associated with the project.

VI. PROCUREMENT AND CONSULTING SERVICES

27. All goods and services financed under this project will be procured in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time).13

All consultants will be selected in accordance with ADB’s Guidelines on Use of Consultants (2010, as amended from time to time). A procurement capacity assessment by the EA will be carried out before any procurement of goods and consulting services is done.

A. Procurement of Goods, Works and Consulting Services

28. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines. 29. Works. No procurement of works will be made for this project.

30. Goods. International competitive bidding procedures will be used for goods estimated to cost above $500,000. National competitive bidding procedures will be used for goods estimated to cost below $500,000. Shopping will be used for procurement of goods and equipment worth less than $100,000. Direct contracting will be used for procurement of goods worth less than $10,000, including workshops and seminars. IT equipment including software packages and vehicle will be procured through the EA or the consultants, as the case may be.

31. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C.

32. Consultants. At the request and on behalf of the government, ADB will assist in the recruitment of consultants. The consultants will be selected by ADB but contracts will be signed and administered by the EA following the ADB Guidelines on Use of Consultants14

12 {Reference to Government laws/regulations to be added during loan processing.}

for loan

13 A procurement plan is provided in Supplementary Appendix H and in the periodic financing request. 14 Checklists for actions required to contract consultants by method available in e-Handbook on Project

Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

http://www.adb.org/documents/handbooks/project-implementation/�

26

project or grant-financed project. The terms of reference for all consulting services are detailed in Section G.

33. To support the implementation of the project, a total of 269 person months will be employed under the project, comprising 119 person months of international consultant inputs and 150 person months of national consultant inputs. A combination of consulting firms and individual consultants will be engaged under the three components. Consulting firms will be selected by quality and cost based selection (QCBS) method at 80:20 ratio. Simplified Technical Proposal (STP) will be required for submission. Short-term specialized tasks deemed necessary and arising during or following the implementation of the project may be undertaken by individual consultants. 34. Component 1 requires an estimated 80 person months of consultancy assignment including 4 international consultants and 5 national consultants. Component 2 requires an estimated 101 person months of consultancy assignment which include 7 international consultants including a project coordinator and 4 national consultants. Component 3 requires an estimated 88 person months of consultancy assignment including 6 international consultants and 6 national consultants. Under Component 1, an international firm in association or joint venture with a local firm will be selected. Under Component 2, a combination of individual and firm will be required while Component 3, due to specialized tasks to be undertaken, individual consultants will be engaged. The terms of reference for all consulting services are detailed in Section G. B. Procurement Plan

Project Name: Governance and Capacity Development in Public Sector Management Country: Lao PDR Executing Agency: MOHA Grant Amount: $6.50 M Grant Number: 46059 Date of First Procurement Plan: Date of this Procurement Plan: C. Process Thresholds and ADB Review

35. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and consulting services as well as prior or post review requirements to the various procurement and consultant recruitment methods used for the project:

Procurement Method

Threshold

ADB Review

International Competitive Bidding for Goods and Consulting Services

Between $500,000 and $1.0M Prior

National Competitive Bidding for Goods and Consulting Services

Below $500,000 Prior

Shopping for goods, including equipment and vehicle <$100,000 Prior Direct contracting <$10,000 Prior

27

Recruitment of Consulting Firms

ADB Review

Quality-and Cost-Based Selection (QCBS) Prior Quality-Based Selection (QBS) Prior Other selection methods: Consultants Qualifications (CQS), Least-Cost Selection (LCS), Fixed Budget Selection (FBS)

Prior

D. 18-Month Procurement Plan

36. The following table lists goods and consulting services contracts for which procurement activity is expected to commence within the next 18 months. Component

Estimated Value

Method/Proposal

Estimated Date

Component 1 -Consulting Services

$1.036M QCBS/STP – Firm 2-3Q2013

Component 2 -Consulting Services

$728,000 QCBS/STP - Firm 2-3Q2013

Component 3 – Output 1 and 2, Consulting Services

Ranges from $30,000 - $150,000 per contract

ICS 2-3Q2013

Component 1 – Equipment

$30,000 Shopping 2Q2013

Component 2 – Equipment

$140,000 NCB 3Q2013

Component 2 – Vehicle $90,000 Shopping 4Q2013 Components 1, 2, 3 -Trainings/Studies

<$100,000 Shopping 1Q2013 – 2Q2014

Components 1, 2, 3 -Trainings/Studies

<$10,000 Direct Contracting 1Q2013 – 2Q2014

E. Indicative List of Packages Required under the Project

37. The following table provides an indicative list of all procurement (goods and consulting services) over the life of the project.

Package no.

Component

Estimated

Value

Est. no. of contracts

Method/ Proposal

Advertisement

Date Consulting Services Package Package 1 Component 1 $1,036,000 1 QCBS

(80:20)/STP 1Q2013

Package 2 Component 2 $728,000 1 QCBS (80:20/STP

2Q2013

Package 3 Component 3 $30,000-150,000

Various ICS 1Q2013

28

IT Equipment and Vehicle Package Package 4 Component 1

-Equipment $30,000 1 Shopping 1Q2013

Package 5 Component 2 -Equipment

$140,000 1 NCB 2Q2013

Package 6 Component 2 -Vehicle

$90,000 1 Shopping 1Q2014

Training/Workshops/Other Similar Activities Package 7 Components

1, 2, 3 $10,001-$100,000

Various Shopping Throughout project

implementation Package 8 Components

1, 2, 3 $5,000-$10,000

Various Direct Contracting

Throughout project

implementation F. National Competitive Bidding

1. General

38. The procedures to be followed for National Competitive Bidding (NCB) shall be those set forth for “Public Bidding” in Prime Minister’s Decree No. 03/PM of the Lao People’s Democratic Republic, effective 09 January 2004, and Implementing Rules and Regulations effective 12 March 2004, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines.

2. Application

39. Contract packages subject to NCB procedures will be those identified as such in the project Procurement Plan. Any changes to the mode of procurement from those provided in the Procurement Plan shall be made through updating of the Procurement Plan, and only with prior approval of ADB.

3. Eligibility

40. Bidders shall not be declared ineligible or prohibited from bidding on the basis of barring procedures or sanction lists, except individuals and firms sanctioned by ADB, without prior approval of ADB.

4. Advertising

41. Bidding of NCB contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised on ADB’s website via the posting of the Procurement Plan.

29

5. Procurement Documents

42. The standard procurement documents provided with Ministry of Finance, Procurement Monitoring Office shall be used to the extent possible. The first draft English language version of the procurement documents shall be submitted for ADB review and approval, regardless of the estimated contract amount, in accordance with agreed review procedures (post and prior review). The ADB-approved procurement documents will then be used as a model for all procurement financed by ADB for the project, and need not be subjected to further review unless specified in the procurement plan.

6. Preferences

(i) No preference of any kind shall be given to domestic bidders or for domestically manufactured goods.

(ii) Suppliers and contractors shall not be required to purchase local goods or

supplies or materials. 7. Rejection of all Bids and Rebidding

43. Bids shall not be rejected and new bids solicited without ADB’s prior concurrence.

8. National Sanctions List 44. National sanctions lists may be applied only with prior approval of ADB.

9. Corruption Policy 45. A bidder declared ineligible by ADB, based on a determination by ADB that the bidder has engaged in corrupt, fraudulent, collusive, or coercive practices in competing for or in executing an ADB-financed contract shall be ineligible to be awarded ADB-financed contract during the period of time determined by ADB

10. Disclosure of Decisions on Contract Awards 46. At the same time that notification on award of contract is given to the successful bidder, the results of the bid evaluation shall be published in a local newspaper or well-known freely accessible website identifying the bid and lot numbers and providing information on (i) name of each Bidder who submitted a Bid, (ii) bid prices as read out at bid opening, (iii) name of bidders whose bids were rejected and the reasons for their rejection, (iv) name of the winning Bidder, and the price it offered, as well as the duration and summary scope of the contract awarded. The executing agency/implementing agency shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected.

11. Member Country Restrictions 47. Bidders must be nationals of member countries of ADB, and offered goods; works and services must be produced in and supplied from member countries of ADB.

30

G. Consultant's Terms of Reference

48. The outline terms of reference for consultants are as follows: Component 1 – Strengthening PFM A. Background 49. To support the implementation of the Governance and Capacity Development in Public Sector Management (GCDPSM), the project will provide policy and advisory technical assistance support to the Government to implement and monitor key reforms to public expenditure management with the focus on strengthening budget planning, and intergovernmental financial arrangements. The project will specifically support Ministry of Finance (MOF) and also coordinate with Ministry of Planning and Investment (MPI), priority sector ministries and their subnational departments. Support will build on the lessons from ADB’s precursor work in the area of budget planning within the scope of Public Financial Management Strengthening Program (PFMSP)15 and the requirements of NT2 Revenue Management Arrangements. 16

• Output 1. Further strengthening capacity to develop a medium term expenditure framework (MTEF) at the MOF level, and in selected sectors (health, education and agriculture), and will include priorities and level of allocations of sub national administrations.

. Specific focus will be on the following:

• Output 2. Strengthening policies and systems of inter-governmental financial arrangement. Specific support will be:

15 In November 2005, the Government approved a five-year Public Expenditure Management Strengthening Program

(PEMSP), which constitutes a cohesive framework addressing weaknesses in (A) fiscal planning and budget preparation; (B) budget execution, accounting, and financial reporting; (C) local government financial management; (D) financial legislation and regulatory frameworks; and (D) technical capacity. ADB TA4627-LAO: Public Expenditure Planning for National Growth and Poverty Eradication Strategy ($0.7 million, 2005-2007; ADB TA7077-LAO - approved in April 2008 to extend the work on MTFF/MTEF and the TA is under implementation; ADB TA7857-LAO – Strengthening State Audit organization - ongoing TA.

16 Nam Theun 2 is development project that aims to generate revenues for poverty reduction in Lao PDR. Nam Theun 2 is a US$1.45 billion, 1,070 megawatt hydropower project that aims to generate revenues for poverty reduction and environmental protection. Four pillars underpin NT2 Revenue Management Arrangements, as provided in the Technical Annex to GLIP: (i) allocation of NT2 revenues, (ii) flow of funds, (iii) reporting and (iv) monitoring and consultations. In summary, NT2 RMA requirements are (1) NT2 revenue is to be used for “eligible” sub-sectors that satisfy eligibility criteria, and these were selected by the NGPES and subsequently left unchanged by the NSEDP (2006-10), the successor to NGPES; (2) NT2 revenue is to be used for “eligible” sub-sectors that satisfy eligibility criteria, and these were selected by the NGPES and subsequently left unchanged by the NSEDP (2006-10), the successor to NGPES.(3) The budget classification system is to be revised and financial management and reporting arrangements enhanced so that expenditures on the “eligible” sub-sectors can be monitored and reported adequately and accurately; (4) The computerized Government Financial Information System (GFIS) is to be stabilized and upgraded so that it is able to track spending on “eligible” sub-sectors in real time; (5) The capacity of the State Audit Office (SAO) is to be strengthened so that it can audit independently and adequately the public accounts prepared by the MOF, including “eligible” spending of NT2 revenue; (6) Regular monitoring, evaluation, and consultation will be undertaken by the MOF; and (7) All public financial and monitoring reports will be published by the MOF.

31

a) Review of intergovernmental fiscal transfers along two dimensions: (i) general

allocation/unconditional transfers and (ii) conditional transfers. b) Suggest policy recommendations for the establishment of unconditional

equalization grants. c) Simulate demand for designing transfers based on population; (ii) area; (iii) and

equalization mechanism and discuss with relevant government counterparts. d) Propose setting up a formal body responsible for institutional coordination of

intergovernmental fiscal policy. e) Socialization and capacity building of the national and local administrations on

the new systems developed

B. International Consultants (4)

1. Public Financial Management and Budget Expert/Team Leader (10 person-months, intermittent)

50. The PFM and budget expert/team leader will have 15 years of international experience and knowledge of PFM systems in developing countries with substantive experience of creation and implementation of medium term budget systems. Specific experience of the PFM systems in Asia and developing member countries is preferable. The expert will have demonstrated ability to develop and implement fiscal policy, budgeting, and expenditure frameworks, in the context of international PFM standards. As the team leader, he or she will also (i) have demonstrated experience with capacity development and change management in developing countries and transitional economies, preferably within the region; (ii) show a good understanding of the history and development of PFM reforms; and (iii) have demonstrated project management capabilities. The expert will report to MOF and perform the role of a chief technical adviser to the Fiscal Policy Department and Budget Department, and work in close coordination with other relevant departments in MOF, other line ministries, Ministry of Planning and Investment (MPI). The tasks will include the following:

a) Undertake a rapid assessment of the fiscal planning, budgeting, and expenditure allocation processes, identifying major challenges and opportunities related to the current fiscal planning and expenditure framework.

b) Prepare an action plan for capacity building (sequenced and prioritized) based on best international practice but closely aligned with best practices and procedures of Lao public sector administration.

c) Prepare a strategy to design an indicative medium-term budget (MTB) based on a medium-term expenditure framework (MTEF), coinciding with goals of the National Socio-Economic Development Plans for submission to the National Assembly (first as a pilot) and parallel capacity building of the relevant staff (Fiscal Policy and Budget Department, MOH, MOE&S, MAF and MONRE).

d) Coordinate with the macroeconomist and support the development of a fiscal coordination framework taking full integrated account of the government budget and the NSEDP including indicators of fiscal policy objectives, and a set of integrated medium-term macroeconomic and fiscal targets and projections, based on outputs of the macroeconomist (detailed TOR refers).

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e) Support the development of a simple operational model for the MTEF, which shall

include: (i) sub-frameworks for estimating revenues and costing expenditures of key activities and priority sectors, (ii) clear links between policy priorities and actual resource allocation decisions, (iii) clear links between expenditure funding allocations and resource availability, and (iv) a mechanism to support decisions on prioritization and sequencing of budgetary expenditures in the context of the rolling MTEF (3–5 years).

f) Assist the government in implementing government – wide MTEF and selected sectors on a pilot basis as a full MTEF takes time to mature and take hold. A parallel budget will help guide the budget when the future year becomes the budget year and refining the frameworks before completion of the project.

g) Formulate and Implement capacity development to help institutionalize MTEF. h) Develop an implementation strategy to include (i) the projected cost of implementing

MTEF (especially hardware, software, capacity enhancement, cost of workshops, printing of manuals, and study tours); (ii) the appropriate institutional and coordination mechanism, such as the establishment of central MTEF implementation unit to oversee the implementation of project activities, and the setting up a high level Steering Committee for technical guidance, and resolution of cross-cutting and interministerial issues chaired by the Budget Department, the agency responsible for the budget; (iii) a communication and sensitization session with all stakeholder to improve awareness; (iv) courseware, and training materials, draft regulations, update manuals, and other guidance notes for implementation of MTEF and to guide MOF staff on the objectives and use of MTEF and spreadsheet models developed; (v) extensive participatory discussions and workshops with stakeholders to build consensus and ownership of MTEF, and other budget frameworks; and (vi) on the job training and mentoring.

i) Work with IT expert for training in Microsoft Access or Microsoft Excel and spreadsheet exercise, including the MTEF spreadsheet. The MTEF spreadsheet model will show forward/baseline estimates for each central government ministry for the broad components of the costs of providing services: Personnel remuneration, non-wage recurrent costs, subsidies and transfers, and capital expenditure.

j) Assist MOF in establishing project management structures, such as a steering committee and a technical committee of stakeholders, and an implementation committee for project implementation and oversight, to ensure the most effective outcome of the project.

k) The PFM and budget expert/team leader will produce inception, progress and final reports. The inception report will be submitted within 2 weeks of the start of the services and will contain a time-bound work plan of activities and deliverables. The work plan to be submitted to ADB and MOF for comment by the end of the third week after mobilization, before it is finalized. Regular progress reports will be submitted at the completion of each field visit to ADB and MOF highlighting the status of key deliverables (to be submitted according to the schedule given in the work plan), implementation issues, and proposed changes. A mid-term report and the draft final report should be submitted at least 2 weeks before completion of the contract. The final report, incorporating comments by ADB, the Department of Economic Planning and Development, and MOF, should be submitted upon completion of the services. The reports should assess impact, outcome, and outputs against the performance targets indicated in the design and monitoring framework.

l) Assist MOES, MOH, MAF and MONRE) in coordinating with the departments of Budget, to submit MTEF budget.

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m) Lead, manage, coordinate, and facilitate all aspects of the Project. n) Perform any other tasks required in implementing the project, including assisting

ADB missions, to help achieve the objectives and goals of the project within the approved budget.

2. Macroeconomist (Fiscal) (6 person-months, intermittent)

51. The macroeconomist will have an advanced degree in economics with an accent on macroeconomics; well-developed analytical, quantitative, and empirical skills; skills in applying this method to policy analysis in a resource-dependent country; and ability to impart knowledge and skills to counterpart staff. The tasks will include the following:

a) Undertake a rapid assessment of the current capacity for macroeconomic analysis to support revenue and expenditure forecasting, including assessment of human resources, information sources, and roles of various government agencies (MPI, MOF and BOL).

b) Prepare an integrated macro-economic coordination framework, and support capacity building in the preparation of a MTEF (within 8 weeks of project commencement).

c) Define macroeconomic forecasting needs for a multiyear budget framework and support the development of capacities and systems that enable this forecasting.

d) Help monitor and report on the economy and the implementation of the statement on the economic and fiscal conditions, and develop the capacity within MOF (Fiscal Policy Department) for relevant forecasts in revenue and expenditure.

e) Help counterpart staff inputs into the planning and budget cycle through on-the-job mentoring. Adopt a structured approach, and develop capacity of core staff.

f) Train staff on application of macroeconomic principles of public finance, teaching of macroeconomic accounts and understanding of the links between them, and the use of a macroeconomic consistency framework—such as financial programming—throughout the implementation period of the project to be the basis of comprehensive inputs into the budget process (details to be worked out during project implementation).

g) Assist the team leader in any other tasks to ensure the successful implementation of the project

h) Provide input into all reports – Inception, regular progress reports, Mid-Term, draft final and final reports, as requested by the team leader.

3. Fiscal Decentralization Advisor (10 person-months, intermittent)

52. The fiscal decentralization and policy adviser/ team leader will have appropriate post-graduate qualifications in economics and public finance and be experienced in managing project teams. Significant experience is required in fiscal aspects of decentralization, particularly in de-concentration of service delivery functions, designing intergovernmental financing arrangements including grant transfer mechanisms, revenue assignments, and design of policy reform frameworks and reform deliverable matrices. He or she will have a good understanding of the overall decentralization reform agenda in Lao PDR. Overall, the fiscal decentralization adviser will provide strategic direction to the reforms and develop specific aspects (unconditional grant formula, criteria for the design of conditional grants, institutional development of the system of inter-governmental fiscal relations, etc.) Specific tasks will include the following:

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a) Mapping of the regions according to fiscal needs and capacity as a basis for

developing intergovernmental fiscal framework including implications for service adequacy and local responsiveness;

b) Input to developing functional assignments linked to fiscal needs/ capacities for all levels of the government and suggest sectors and areas for consideration by the government;

c) Designing intergovernmental financing arrangements with focus on unconditional and conditional grants;

d) Support institutional coordination arrangements at the central level; e) Drafting recommendations on fiscal arrangements and related regulations; f) Develop training modules and conducting training on functional assignments; g) Lead, manage, coordinate, and facilitate all aspects of the project support; h) Assist MOF formulate its work plan on fiscal decentralization, and to develop a

monitoring and evaluation framework to assess progress against the work plan; i) In coordination with the team, conduct consultations with all stakeholders critical to

building consensus through one on one meetings and a multi-sectoral consultative workshop on policy framework.

4. Fiscal Economist (6 person-months, Intermittent)

53. The Fiscal Economist will have appropriate qualifications in public administration, human resource management, economics, finance or other closely related decentralization disciplines and be experienced in developing training modules in PFM, local finance and functions, fiscal decentralization and in imparting training. The Fiscal Economist will work closely with the International Team Leader with the main tasks being to support MOF to strengthen oversight functions in expenditure assignments, resources, fiscal decentralization, local planning, and to support training and capacity building. The Fiscal Economist will undertake all necessary work on simulations and system development for the new regulations, with a special focus on budget norms implementation, and assist capacity development program design and content development.

a) In coordination with the team leader, provide input to developing functional assignments linked to fiscal needs/ capacities for all levels of the government and suggest sectors and areas for consideration by the government;

b) Undertake a quick capacity needs assessment of central oversight agencies and develop a Capacity Building Framework to address skill gaps;

c) Support MOF in providing training and capacity building for better implementation of PFM in provinces and districts by designing and administering specific trainings directed by the needs and by coordinating with other development partner programs;

d) Assess capacity building needs and priorities based on demand driven principles including budget planning and expenditure management in select provinces/ districts;

e) Organize consultative workshop on survey and study recommendations. C. National Consultants (5) 54. Six national experts will be recruited under this component. They will work closely with the international experts identified above. The team leader, assisted by the logistics coordinator, will coordinate the tasks of domestic experts.

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1. Specialist in Budget (12PM, intermittent)

55. The budget specialist will assist the Team Leader and should have some background in finance, especially public sector financial management issues. S/he should have a university degree either in Economics or Public Finance. S/he should be proficient in English. S/he should be familiar with the government structure, and the particular functions of the Ministry of Economy and Finance. S/he will assist the Team leader in providing guidance and training in the areas of budget formulation, in preparation of the Medium-Term Expenditure Framework and budget related issues.

2. Macroeconomist (12PM, intermittent) 56. The macroeconomist will work closely and assist the international consultants in support of implementation of project activities supporting design and implementation of capacity development activities and training concerning MTFF and MTEF. The expert will (i) have basic knowledge of macroeconomic accounts; (ii) collect newly released data and statistics related to the economy of Lao PDR; (iii) compile macroeconomic data needed for the Team Leader; (iv) review new legislations, guidelines, circulars and other economy-related documents written in Lao and summarize them in English for use by the international consultants; (v) liaise with MOF, MPI and BOL departments concerned and collect other information required as inputs to mid-term, draft final, and final reports; (vi) provide logistic support necessary for training programs to be provided under the project component; (vii) provide logistic support to organize the tripartite and other meeting(s) for ADB review mission(s); and (viii) provide additional support which may be requested by ADB’s project officer/international consultant(s), as needs arise.

3. IT applications specialist (12PM, intermittent) 57. The IT Specialist will have a background in information technology (IT), and the required experience and qualifications in database management systems. The specialist will have (i) some demonstrated experience in managing financial management and accounting software systems and have a good working knowledge of English, and (ii) demonstrated aptitude for computer software and database management systems. Working experience with international consultants and/or the government is an advantage. The specialist will report to the Team Leader and the Macroeconomist in IT aspects of implementing the design of MTFF and MTEF and supporting the design of capacity-building modules and conduct IT training programs in coordination with MOF. The specialist will organize IT workshops and assist the international consultants and ADB missions in preparing relevant materials.

4. Fiscal Economist(2) (6PM each, intermittent) 58. Two Fiscal Economists will assist the international experts for a period of 6 months each, will assist overall implementation of, and lead capacity development activities related to activities concerning intergovernmental financial arrangements. 59. In addition, the national consultants will (i) assist the Team Leader and the international specialists in all aspects of their task within the terms of reference; (ii) under the guidance of the team leader, collect and analyze information, and make it available in English in an organized, readable form. Help the international team make available to the Government all reports and project outputs; (iii) conduct research on specific topics as required by the team leader and the international specialists; (iv) arrange and organize discussions and workshops, and help the

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team leader and the international specialists prepare materials for them, including translations of documents (if necessary) and interpretation of the discussions; (v) act as an interpreter in meetings and training sessions, help translate documents (if needed) and coordinate translation works to be contracted to others; (vi) Prepare copies of training materials, reserve the venue for training, and liaise with training participants and other resource persons and (vii) perform other task that may be assigned by the international team leader. Component 2 - Strengthening public administration reforms and public sector capacity at national and sub-national levels with a focus on district administration Output 1 – Support to MOHA D. Background 60. The Government has taken several measures to strengthen public administration and civil service capacity. Successive NSEDPs, the Governance Strategy, policy guidance and directions from the VIII and IX Party Congress – have all stressed government determination to build an effective, efficient, well-trained, honest and ethical public service. Several resolutions, decrees, decisions and instructions have been adopted and under implementation to improve public service delivery, including resources for service delivery under budget law, to encourage investment and encourage Associations and community to work with government to extend services to citizens in the remote areas. Government has perused an integrated strategy for development of the civil service – ensuring enabling conditions, strengthening organizations, developing human resources. 61. The Governance and Capacity Development in Public Sector Management Program support the Ministry of Home Affairs (MOHA) in implementation of the National Governance and Public Administration Reform Program (GPAR) 2011 to 2015, endorsed by the Prime Minister in February 2012. This component will provide support to the Ministry of Home Affairs (MoHA) in strengthening public sector management with focus on civil service policy, and training in personnel management, financial management and service delivery. 17

E. International Experts (6)

1. International Civil Service Management/Human Resource Management/Change Management Expert and Team Leader (7 person months, intermittent)

62. The expert will have a strong background and experience in human resource management in developed and developing countries, particularly in civil service law, and civil service management issues. The expert will have (i) advanced university (Master) degree in relevant field: public administration, public management, public policy, business administration, economics, and political science; (ii) at least 15 years of experience in preparing training materials and delivery of relevant training activities such as on public administration or human resources management to senior government officials; (iii) demonstrated experiences in 17 The proposed support to Ministry of Home Affairs (MoHA) will be anchored in the NGPAR guides the overall work

of the Government and its partners in further developing an efficient and effective civil service at all levels and to improve service delivery. MOHA is responsible for formulating and implementing policies and strategies on human resources development and management, with focus on capacity development, and provides overall leadership for public service reform in these areas. MOHA is committed to strengthen government efforts to train senior civil servants across all levels of government, including sub national levels.

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developing and implementing capacity building initiatives; and (iv) good interpersonal skills; (v) experience of working on change management issues within a public organization; (vi) a knowledge of modern Human Resources Development techniques and an understanding of organizational theory and practice with regard to the public sector and (vii) knowledge and understanding of gender issues in HRD. The expert will have proven track record in working effectively within multidisciplinary teams and excellent communication, interpersonal and team building skills. The expert will act as the team leader, coordinate the work of other international and national consultants, consolidate their inputs into the various reports, and collaborate with other development partners to enhance the impact of ADB assistance. 63. The expert will support MOHA to manage its human resource especially during a period of institutional change.18

a) Review draft/final civil service law (draft/final), provide inputs (including those related to gender) for strengthening the draft, and identify and recommend policy issues that need implementing decrees and/or circulars;

Focus will be on recruitment and performance assessment, including annual staff appraisal reports, promotion and upgrading of staff and to reward performance, and for sanctioning staff on non-performance. S/he will assist the MOHA to appropriately manage the human resource issues related to the implementation of the institutional reform agenda. S/he will also train and mentor staff of the MOHA and in particular the HR team and ensure there is a transfer of knowledge. The consultant will not be expected to carry out the work of the MOHA but rather support staff with their expertise and knowledge. Tasks will include the following:

b) Support implementation of the civil service law; c) Draft resolutions, decrees, decisions and instructions as required; d) Support MOHA to draft a Civil Service Development Master Plan, and assist in

implementation; e) Support awareness building on civil service law and master plan; f) In support of the above, the expert will provide gender sensitive inputs for the

development of clear and specific job descriptions and minimum qualification standards for all civil service positions; (ii) fair and accountable procedures for recruitment, performance evaluation, and promotion; and (iii) for implementation of a code of conduct to strengthen ethical standards of civil servants;

g) Design, and recommend a transparent staff performance management system which is linked to the training development program and has the necessary staff incentive systems to ensure compliance with the new system;

h) Facilitate knowledge sharing processes within MOHA and with the other Ministries, Departments and Agencies;

i) Other duties and tasks as may be requested by MOHA and ADB within the scope of the project;

j) Support MOHA and Public Administration Research and Training Institute (PARTI) to undertake the following training and capacity building related activities - (i) a rapid assessment/review of existing HR Policies and Procedures and identify gaps and capacity weaknesses compared to international best practice; (ii) Identify capacity development needs of civil servants in relation to new MOHA decree; (iii) Develop a capacity development plan for providing training at the national and sub national level; (iv) Develop training package and materials for the implementation of capacity development activities and organize workshop and training curriculums, methodologies, training plans, and prepare training and workshop materials (which would also include relevant case studies) and hand-outs in Lao and English in

18 Mention to be made of 03/2011 – strengthening districts

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generic civil service training at district level (personnel management, financial management and service delivery) in coordination with international and national experts engaged under the project for district level civil servants (from three pilot districts from 17 provinces), and select officials drawn from provinces and from the central level; (v) Ensure that gender issues are mainstreamed into all capacity development and training materials and activities;

k) Focus of training and capacity development will be to Train the Trainers (TOT) for providing training at the national and sub national level in coordination with core group of trainers, and in coordination with reputed national training institutions;

l) Monitor and assess results and impact of the capacity development activities; m) Support Advocacy Activities (in coordination with capacity development and

communication experts) - (i) Develop strategies and a plan for awareness-raising and advocacy activities; (ii) Develop a detailed plan for communication and advocacy activities; (iii) Support MOHA in implementing awareness-raising and advocacy activities; (iv) Design public and media campaign programs and materials; (v) Identify various mediums and channels, e.g., visual aids, printed materials; and (vi) Organize forums, to ensure stakeholders understand and support the new law;

n) Submit inception, monthly progress, mi-term, draft final and final reports.

2. International Planning and Financial Management Expert (4 person months, intermittent)

64. As public services responsibilities are transferred to districts that have no experience of performing integrated planning and budgeting, there is need to capacitate the districts with planning and budgeting tools, systems, procedures, and skills in programming and project development. The execution of this project will require important investments in capacity development for budgeting and for financial management. In a longer term, skills and know how should also be increased so that the planning process can be driven locally, increasing thus ownership and accountability as well as responsiveness to local population. Therefore, a specific component has been designed within the project to strengthen planning and budgeting processes in 51 districts The Planning and Budgeting Specialist will lead capacity development activities for Planning and Budgeting. He/she will prepare guidelines and necessary tools to strengthen the planning and budgeting processes at district level, taking in the following considerations:

a) Processes and guidelines are consistent with the requirements of the Planning cycle as established by the Ministry of Planning and Investment, and more specifically with the approach and methodology adopted for the preparation of the Successive NSEDP

b) Gender mainstreaming is envisioned and integrated at all steps of Planning and Budgeting process

c) Budgeting process is consistent with the requirements of the PMFSM and MOF guidelines and budget circulars

d) Participatory approaches are integrated in the planning process e) Tools and instruments must be adapted to the level and capacities or different users. f) More specific responsibilities are:

i. Review current planning methodologies/instruments and devise planning and budgeting systems for districts that conform Ministry of Planning and Ministry of Finance practices as well as harmonized them with other partners, ii. Develop user-friendly manuals, guidelines and tools for Planning, Budgeting and Programming, as well as training materials,

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iii. Supervise and advise technically on the Training program of the component on bottom-up participatory planning and budgeting for project development, on preparation of Strategic Development Plans, on preparation of detailed and realistically costed budgets and on formulation of projects, iv. Assist relevant personnel of Districts Administrations in implementing standard accounting and reporting practices (e.g. preparing financial forecasts, requests for advances & financial reports/statements; preparing & keeping ledgers/journals; preparing for & assisting audits; etc…) in accordance with the requirements as set out in the relevant Guidelines) and other valid financial management regulations.

65. Develop and conduct of a financial management training program for district administration (finance and accounting staff) and relevant staff within MOHA with a focus on Training of Trainers (TOTS for about 17 finance/accountant professionals). The Expert’s key tasks will include the following:

a) Design and prepare training materials for modular financial management training program based on the existing legal framework for financial management in Lao PDR, including the guidelines and procedures of key Development Partners (in particular ADB, UNDP and WB). The modules should be suited to meet the financial management capacity building needs of the target group of Finance Officers

b) Conduct the training on financial management to about 150 trainees (from 3 districts under each province) in coordination with PARTI

c) Provide training in financial management to about 20 Government officers with a minimum of 5-years experience in project financial management finance and accounts each to serve as trainers

d) Test the delivery of the training program by conducting the first training course starting with the basic training module, followed by xx training and workshops

66. Expected Outputs

a) Detailed workshop and training work plan- schedule of all training courses and other activities.

b) Development workshop and training materials of each subject in both Lao and English language.

c) Delivery of workshop and training programs Development of monitoring and feedback mechanism.

d) Report on analysis of participants’ feedback on workshop and training methodologies, materials used in each training program.

e) Submission of inception, monthly progress report and the final report summarizing achievements and lessons learned in English and Lao language.

67. Deliverables

a) Guidelines for Strategic Planning designed for districts, adapted to Lao context and in line with MPI and MOF , integrating gender concerns and participatory approach to Planning,

b) Guidelines for budgeting, c) Manuals for Planning and Budgeting for districts d) Tools for budget preparation and projects formulation, e) Tools and modules for training on strategic planning, and budgeting prepared for

different stakeholders f) Training sessions organized (numbers to be determined)

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3. Governance and Service Delivery Expert (3 person months, intermittent) 68. The expert will have University degree, and at least 10 years of professional experience, and a minimum 5 years experience of working in an international setting. The expert should have had at least 10 years of professional experience in working with local governments and strengthening their administrative and service delivery capabilities. A minimum of 5 years of international experience in working with local governments on service delivery improvements. Will possess excellent report writing and oral presentation skills. The expert should have a solid experience in capacity building of local administration services process, preferably a combination of academic and technical experience. The expert will support MOHA to ensure effective, transparent, inclusive and participatory local administration, in particular through full implementation of the new Resolution 03/2012, which aims to devolve responsibilities to local authorities at the district level in managing delivery of state services to local communities. The objective is to improve the delivery of selected services and strengthen the capacity of district level officials and staff from 51 pilot districts through training, and demonstration projects at improving the delivery of selected services. Accordingly the expert will aim at:

a) Enhanced Capacity at the district level through organisation of training programmes, participatory mechanisms, awareness-raising events, and by developing new tools including handbooks, guidelines for service delivery in key areas – agriculture, education and health services.

b) Enhanced Effectiveness in district Service Delivery through Pilot Projects. The expert will design and implement pilot projects and initiatives. The pilot projects and initiatives will test the efficiency and effectiveness of the present approaches, tools and interventions, and will also be utilized to draw lessons for furthering the local administration reform process. This would also involve the improvement of some selected district service delivery processes relating to key MDGs in the health and education sector.

69. Specific tasks will be: (i) formulation and implementation of a training plan; (ii) prepare a communication strategy for implementation, and prepare guidelines for participatory mechanism; (iii) assist in preparation of internal policy paper on local government reform; (iv) Supporting networking activities (workshops, seminars, exchange visits, documentation) to promote ongoing service delivery improvement; (v) design performance indicators and tracking and monitoring criterions of three key MDS services in the health, education and agriculture sector, with a gender dimension and (v) provide tailor made background support the local experts during the organization of the workshop.

4. Gender and Governance/ Public Sector Management Specialist (5 person

months, intermittent) 70. The Consultant will have at least 8 years’ experience in gender and governance and academic background in the field, with proven expertise of advising and working with government agencies.

a) Provide gender inputs into the capacity needs assessment checklists/ materials for civil service needs assessment.

b) Review all policies, decrees, organizational structures at central and sub-national levels regarding PFM and PSM reform process.

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c) Prepare training materials, including training of trainers’ guides/materials and relevant practical checklists including a step by step guide on implementation based on current government organizational structures and processes, for : (i) key gender issues vis-à-vis key priority sectors; (ii)gender analysis and planning guidelines/ checklists and materials for key priority sectors; (iii) gender responsive budgeting and gender analysis of budget; and (iv) gender-specific and sex-disaggregated results.

d) Help identify a pool of potential trainers. In this regard, develop criteria for selection of potential trainers.

e) Provide initial training to trainers and one refresher training within 6 months. f) Provide a final report .

5. Gender and Human Resource and Organizational Development Specialist (5 person months, intermittent)

71. The Consultant to have at least 5 years’ experience in gender and human resource development and academic background in the field, with proven expertise of advising and working with government agencies.

a) Review all policies, decrees, guidelines and processes related HRD and personnel management.

b) Consult with management and staff regarding key gender issues for HRD and personnel management.

c) Provide gender related inputs into the Civil Service Law, decrees and related policy recommendations.

d) Based on above, prepare training materials on key gender issues in Human resource development, including, employment, benefits, capacity development, career paths and proactive measures to support women’s entry and promotions within the civil service.

e) Develop criteria for selection of trainers and help identify a pool of potential trainers. f) Provide initial training to trainers and one refresher training within 6 months. g) Provide a final report

72. Implementation Arrangements: Ministry of Home Affairs as the Implementing Agency will be responsible for accomplishing the above project gender actions. The Gender and Governance/ Public Sector Management Specialist, Gender and HRD Specialist and the National Gender Specialist will report to the Head of Cabinet of MOHA. The Consultant Specialists will produce the outputs in consultation with Cabinet members, Project Team Leader (Consultant) and relevant departments at the national and provincial/district levels.

Output 2 – Support to NCAW

6. Gender and M&E Specialist (5 person months, intermittent)

73. The expert will have University degree, and at least 10 years of professional experience, and a minimum 5 years experience of working in an international setting. Specific tasks will be:

a) Review NCAW organizational structure and undertake an assessment of key NCAW staff members’ capacity at the national level to undertake M&E;

b) Undertake briefing and consultation with ministries to assess interest for collaboration; c) Based on sectors selected, prepare briefing materials;

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d) Consult and agree with selected ministries on key targets or indicators to be measured;

e) Develop training materials on key gender issues in the sectors, guidelines on analysis of data, and setting up a MIS system;

f) Train NCAW, DAW and Planning staff of selected ministries and set up a pool of trainers;

g) Support NCAW M&E and Planning staff to set up the MIS system; h) Train NCAW and DAW of selected Ministries on reporting on data; i) Provide on –the-job support to NCAW staff on implementation; j) Provide a final report on the process and achievements.

F. National Experts (4) 74. Three National Experts/Trainers will be engaged for supporting the Team leader, and providing training to selected officials at the central and provincial and district levels. They will also take the lead in Training of Trainers, in coordination with senior MOHA officials, International experts and reputed academic institutions in Lao PDR.

1. National Civil Service Management Expert (12 person months, intermittent)

75. The expert will have a strong background in human resource management and Lao PDR’s civil service administration. The expert will work closely with the team leader and report to MOHA and ADB; provide regular work reports as may be required by MOHA; and follow regulations and policies of the Government, particularly those of MOHA. Tasks include the following:

a) Provide inputs in to the tasks of the Team leader - review diagnostic studies of current civil servant management, including analysis of issues and challenges of the current system, help analyze the experience and lessons of other countries in reforming civil service systems, help analyze the experience and lessons of other countries in the region in reforming civil service systems, help formulate a policy framework for the renovated civil service administration.

b) Assist in conducting consultative workshops with stakeholders; c) Identify capacity development needs for project implementation and civil service

management reform d) Develop a capacity development plan, support the implementation of capacity

development activities such as training workshops, training programs, and study tours

e) Monitor and assess results and impact of the capacity development activities. f) Assist team leader and other consultants in working with government agencies; g) Provide inputs into inception, progress, mid-term and final reports in the assigned

areas

2. Planning and Financial Management Expert Evaluation Expert (12 person months, intermittent)

76. The expert will work closely with and provide support to the international experts.

3. Gender Specialist (12, person months, intermittent)

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77. The consultant will have a Master’s degree in social development or gender or in any other related field. She will have at least 3 years’ practical experience in gender or social development. She will assist the Gender and Governance and Gender and HRD Specialists and undertake the following tasks:

a) Support the review of policies, decrees, organizational structures and processes related to PFM, PSM and HRD reforms

b) Assist in interviewing management and relevant staff at the national and provincial/district levels related to the reforms

c) Assist in the preparation of training materials d) Co-facilitate training workshops and support organization of training e) Provide any other support required for the smooth delivery of the gender related capacity

development tasks. f) Provide coordination support for the gender related capacity development activities.

4. Service Delivery and Communication Expert (12 person months,

intermittent)

78. The Communication Expert should preferably possess the skills and experience and good understanding and knowledge of Millennium Development Goals and government’s governance agenda. S/He will have practical experience working with the ministries/institutions/ communities in implementing local empowerment and service delivery projects/activities at all levels (national, provincial, local). The expert will have practical experience on the production and publication processes of communications materials and good experience with computers, electronic networks and software used for communication purposes (i.e. Website, electronic bulletin, etc.). The expert will posses ability to work in a team, under pressure and ability to meet deadlines. The Communication Expert will provide the relevant public/media relations and communication support to MOHA. S/he will maintain high standards of service delivery, including adherence to deadline, quick response time, accuracy and completeness of information, sensitivity to client needs. Specific tasks will include:

a) Develop strategies and a plan for awareness-raising and advocacy activities. b) Develop a detailed plan for communication and advocacy activities. c) Support MOHA in implementing awareness-raising and advocacy activities. d) Design public and media campaign programs and materials. e) Identify various mediums and channels, e.g., visual aids, printed materials, f) Organize forums, to ensure stakeholders understand and support the new law. g) Devise an integrated advocacy and outreach strategy for the project. h) Organize events and outreach activities, such as campaigns, consultation sessions,

public events and guide the relevant experts on communication to secure the efficiency of elated project activities

i) Establish and monitor the communication/outreach work plan j) Ensure the timely and effective management of the communication activities as

scheduled k) Craft sound messages and write articles, press releases and speeches l) Contextualize key messages, talking points and briefing notes m) Maintain strong links with beneficiaries/media/civil society/private

sector/universities/other donor agencies/Embassies and other stakeholders to ensure the delivery of the project messages to relevant target audiences

n) Produce effective and target-oriented outreach material including visuals and printed publications, booklets etc. and edit their translations if necessary

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o) Provide support on the design of a user-friendly and interactive program and its projects web-sites; ensure that strategic and updated information are posted, edit the necessary web page materials.

p) Facilitate communications mentoring for project staff

5. Project Coordinator - International (24 person months, intermittent)

79. The Project Coordinator is expected to have at least 5 years practical experience in project administration/secretarial work, familiar with the systems of the Government of the Lao PDR and ADB. The coordinator will principally assist project administration with MOHA, including arranging workshops and training programs and will provide administrative support to procurement of equipment under the project, administration of contracts, disbursement of funds and reconciliation of accounts. The coordinator will also assist with providing logistics support for the international consultants and the national consultants engaged through the consulting firm. The coordinator will also help liaise with ADB team and government counterparts. The coordinator will provide specific support to project management unit within MOHA (PMU) and strengthen existing secretarial services. Specific scope of work will be:

i. Organizing meetings, preparing agenda and minutes of meetings upon request ii. Supporting the PMU office, ensuring adequate and timely provision of funding,

equipment and support iii. Supporting MOHA in maintaining accounts for operating the PMU office and making

payments for all workshops/seminar expenses under the project and payment to consultants as approved by MOHA and the ADB task manager. The administrator will establish a bank account solely for the purpose of making payments for PMU operations. Every month the coordinator will liquidate the funds, and will prepare and request advance payments on a three month basis

iv. Providing logistical and administrative support to regular and special ADB missions overseeing the Program

80. In addition, the specialists will (i) assist the Team Leader and the international specialists in all aspects of their task within the terms of reference; (ii) under the guidance of the team leader, collect and analyze information, and make it available in English in an organized, readable form. Help the international team make available to the Government all reports and TA project outputs; (iii) conduct research on specific topics as required by the team leader and the international specialists; (iv) arrange and organize discussions and workshops, and help the team leader and the international specialists prepare materials for them, including translations of documents (if necessary) and interpretation of the discussions; (v) act as an interpreter in meetings and training sessions, help translate documents (if needed) and coordinate translation works to be contracted to others; (vi) Prepare copies of training materials, reserve the venue for training, and liaise with training participants and other resource persons and (vii) perform other task that may be assigned by the international team leader. G. Component 3 - Improvements in public investment management capacity H. Output 1 - Capacity building in public investment management capacity concerning state land leases and concessions I. International

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1. An investment and contract management expert (6 person months, intermittent)

81. The expert will have at least 15 years of experience in investment and contract management of projects and concession agreements in natural resource sector, especially relating to land concessions and agreements. The expert will strengthen capacity in central ministries (MPI, MONRE and MAF) and at the provincial government level to strengthen institutions and build capacity to screen, award, monitor, and exercise effective oversight at the national, provincial and district level. Key areas of support will be:

a) Support an institutional assessment of the current practice procedures and criteria in the implementation of award of state land leases and concessions. Assessment will include an overview of the institutional mandate of various agencies19

, general requirements and principles included in the Legal Documents - Decree on State Land Lease or Concession, No. 135/PM, 25/05/2009), Law on Investment Promotion (2009), Decree on the Implementation of the Land Law, No. 88/PM, (03/06/2008), Forestry Law (2007), Decree on the Compensation and Resettlement No. 192/PM (07/07/2005), Law on the Promotion of Foreign Investment (2004) , Land Law (2003), Law on Agriculture (1998), Law on Mining (1997) and Decree on State Land Lease or Concession, No. 135/PM.

b) Formulate a capacity building plan and provide training to effectively screen investment proposals concerning (i) Issus of compensation (Decree 192/PM); (ii) Resettlement and compensation process (Technical Guidelines on compensation and resettlement in Development Projects and Decree 192/PM); (iii) Issues relating to land conflicts relating to state land leases or concessions (Land Law, Decree 88/PM, Decree 135/PM; (iv) Concession Fees (Land Law, Decree 135/PM, (v) Land Management and Monitoring (Decree 88/PM – on the implementation of the land law); (vi) Terms of State Land Leases and Concessions (Decree 135/PM).

• Training focus will be on contracting process, i.e Pre-investment process,

contract management, monitoring & enforcement. Training on pre-investment process will be provided to aligning contracts and procedures, sharing international best practices in investment decision-making, and identifying contractual clauses to increase effectiveness of monitoring and enforcement through pilot case studies.

• Contract management, monitoring and enforcement will focus on contract drafting with emphasis on (i) clarity of enforceable obligations for investors; (ii) requirements regarding monitoring contractual obligations; (iii) clarity of sanctions for breaches; (iv) managing unforeseen circumstances; (v) procedures for dispute resolution related to the contract or project activities and (vi) termination and assignment clauses.

19 MPI is the leading agency in the process of approving concession business, is responsible for the inclusion of

inputs from all relevant stakeholders sectors in the decision-making process, and also issues the concession registration certificates. MoNRE is technically responsible for approving all land concessions except mining concessions, with prior consent from MPI, MAF - for approving land concessions regarding agriculture and forestry, MoIC - for approving land concessions regarding industrial plants and farms and MoEM – responsible for approving concessions regarding mining, etc.) plus corresponding level of administrative authorities.

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• Training will also focus on (i) Model contract within the wider context of the strategic vision of the Agriculture Development Strategy and Natural Resources and Environment Sector Plan 2011-2015 and the associated Action Plan; (ii) Negotiation skills training; and financial appraisal training.

• Training will identify, and encourage proper project documentations. c) The expert will plan, organize, design and conduct workshops/seminars targeting

central and provincial/local government staff involved in land management focusing on, but not limited to, the above mentioned areas.

d) The expert will prepare manuals, guidance notes following stakeholder consultations and provide theoretical training, and on-the-job mentoring as relevant.

e) The expert will coordinate with development partners, including ADB supported projects in the ANR sector to ensure complementarities, and avoid overlap. Specifically, the expert will coordinate with the EA/IAS and ADB and synergize with the relevant capacity development under the Sustainable Natural Resource Management and Productive Enhancement Project (Grant 0144-Lao), and Small holder Development Project (4511 – 001 – Lao).

f) The expert will assess, and engage national/international experts as resource persons, on a need basis, and subject to availability of resources, for capacity building in the area of (i) Project and Financial Analysis, Evaluation and Modeling, (ii) Investment Planning and Assessment, (iii) Land/Property Valuation methods and other relevant areas of research.

g) The Firm will discuss and clarify relevant issues, and for project management purposes work with the Department of Investment Promotion, Ministry of Planning and Investment, Department of Planning and Finance, Ministry of Agriculture and Forestry, and the Cabinet Office, and the Department of Land Planning and Development, Ministry of Natural Resources and Environment (MONRE).

h) Training will focus at the Ministerial level, DG’/DDG/Director/s level, and Technical level and will include relevant provincial and district officials.

i) Provide techncial advise on legal contradictions and legal hierarchy in the application of the Law on Investment Promotion (Article 28) and (Decree 135/Pm and Land Law (Articles 65) especially relating to duration of state land leases and concessions.

j) Undertake any other tasks as requested by the Government and the ADB within the scope of the Terms of Reference.

J. National Experts

1. Investment and Contract Management Expert (2) (6 person months each, intermittent)

82 Two experts, having background in law and economics, will be engaged to support the international expert in activities mentioned in para 81 above. National experts will undertake research, identify the hierarchy of laws, and also document the relevant provisions of the applicable laws and provisions, and identify gaps that will contribute to refining the training curriculum. K. Output 2 - Public – Private Partnership Arrangements L. International

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1. PPP Policy and Institutional Expert (6 person months intermittent over 12 months)

83. The international PPP policy experts will have at least 10 years of experience in PPP policy; and in developing an enabling environment and PPP project development processes. They should have experience in developing PPP manuals and have built up a knowledge base in all aspects of the PPP project development cycle including financial and legal assessment, statutory project assessment, project management, stakeholder consultation, risk assessment and output specification, payment mechanisms, and contractual issues. The international experts, in coordination with the national experts, will be responsible for the following activities:

a) Provide advice in the formulation of strategies, policies, procedures and programs relating to PPPs.

b) Help establish a high level ministerial committee to coordinate and promote PPPs in Laos with required vision and leadership

c) Help develop a policy framework and a set of principles for the Government for promoting PPPs in Laos and help establish a central PPP unit with a clear mandate and effective operating mechanisms

d) Help develop a structured step-by-step approach for promoting PPPs in Laos. e) Identify the appropriate legal/regulatory/institutional mechanism to promote PPPs in

Laos, initially focusing on the health, education and agri sector f) Recommend the appropriate and ideal institution/agency to function as the focal

point for promoting PPPs in Laos-that appears appropriate for Laos in this preliminary phase of analysis-the model most suitable to catalyze PPPs in infrastructure. Recommend the core mandate and functions of the proposed set-up and the staffing skills required to operate this unit.

g) Analyze existing PPP policy documents h) Review national approaches on risk allocation and PPP project development and bid

processes, which may involve review of documents and discussions with relevant government bodies to understand the rational of the approaches to date

i) Outline measures for the proposed unit to educate the public about the usefulness of PPP and establishing dialog with the broadest possible spectrum of groups that have a legitimate interest in PPP projects

j) Outline measures for coordination with various ministries and local communities k) Develop guidelines, procedures and criteria to be used for appraising PPP projects. l) Develop a PPP policy manual in the context of the legislative and regulatory process

containing detailed instructions on processes and procedures to be followed during project identification, planning, procurement, implementation, and monitoring phases; and dispute resolution mechanisms and their dissemination on a website

m) Prepare a checklist to identify potential projects for development using PPP and also prepare the terms and reference of the operationalizing project development budget in consultation with MPI, MOF and ADB.

n) Conduct workshops as required to raise awareness among relevant government agencies on PPPs for infrastructure development. Will engage in stakeholder consultation with private sector groups such as the Lao Business Forum (LBF), Lao National Chamber of Commerce and Industry (LNCCI) and various associations representing the private sector (both international and national associations) in the development of PPP framework

o) Will function as the team leader and help coordinate the output of all components

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p) Submit an inception report with detailed work plans within 3 weeks of commencement of work, draft interim report within 10 weeks from the start date, draft final report within 16 weeks from the start date, and final report (after incorporating all comments) within 18 weeks from the start date. Workshops and seminars will be conducted as required

2. PPP Legal and Regulatory Expert (4 person months intermittent over 12

months) 84. The international experts will provide inputs for developing the regulatory framework for PPP. They will have at least 10 years of international experience in infrastructure regulation in both developing and developed markets. They should have strong credentials in regulatory economics with regard to the interface between regulatory and commercial interests. The experts will be responsible for the following activities:

a) thoroughly review relevant government and sector legislation and regulatory arrangements;

b) Identify and recommend, the required legal and regulatory framework as well as what kind of international standards and practices can be applied suitable to the environment in Laos so as to attract private participation in PPPs in infrastructure with particular focus on the education, health and agriculture sectors.

c) Help develop incentive based regulation with clear policies on government support d) Provide guidance on legislative and regulatory reforms based on a comparative

analysis with international best practices and given the evolving PPP policy framework.

e) Help the Ministry of Agriculture, Education and Health and (any other key responsible agency) in developing sector specific regulations and guidelines

f) Conduct workshops as required, to help the key agencies understand the implications of the suggested regulations and guidelines on private participation in infrastructure.

g) In coordination with the PPP policy experts, the infrastructure legal and regulatory experts will submit an inception report with detailed work plans within 2 weeks of commencement of work, draft interim report within 8 weeks of the start date, draft final report within 14 weeks of the start date, and final report (after incorporating all comments) within 16 weeks from the start date. Workshops and seminars will be conducted as required.

3. PPP Education and Health Sector Experts (6 person months each

intermittent over 15 months period) 85. The experts will have at least 10 years of international experience in advising on setting up a project development facility, including institutional structure, operating mechanisms, and funding requirements. The selected firm should have worked in a variety of regions and developed a knowledge base in institutional development with reference to PPP project development and structuring. The experts will undertake the work in three phases as detailed below:

Phase I • Review the health and education infrastructure policy • Identify areas for PPP. Help to identify/develop pilot projects in the education and

health sectors in Laos • Support findings with national and international PPP models

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Phase II

• Recommend all possible PPP structures to fill infrastructure gaps • Assess private sector appetite for PPP • Suggest 2-3 quick wins for immediate implementation

Phase III

• Develop templates for PPP structures recommended • Provide a “ How to‟ guide for identifying appropriate PPP structures to use • Develop model PPP “Templates” including the RFQ, PQQ (Pre-Qualification

Questionnaire) process, the RFP documentation, the Draft Concession Agreement • Assist in developing monitoring process and setting performance standards for

hospital and education PPP transactions • Help in carrying out the project preparatory work in a couple of pilot PPP projects.

86. Provide support for holding workshops to disseminate information on PPPs to the Government agencies and other relevant stakeholders.

4. Gender Expert (6 person months intermittent over 24 months period) 87. The expert will have at least 10 years of international professional experience on gender. Specific tasks are the following:

a) Prepare checklists/ guidelines for gender assessments/ analysis for each of the priority sectors.

b) Develop gender related briefing/training materials for each of the priority sectors c) Train Gender Specialist hired at the PPP unit on above training materials prepared. d) In collaboration with Gender Specialist at the PPP unit, provide training to all staff at

PPP unit on gender issues in the key priority sectors and gender assessments. e) Ensure that relevant staff of sector agencies are trained on gender issues vis-a-vis

sector and gender assessments. f) Ensure that mitigation measures and other social risks will address gender concerns.

M. National Experts

1. Legal and regulatory expert (6 person months, intermittent) 88. The expert will have a degree in Law and should be well versed in English and with local laws and regulations applicable to the Lao, PDR environment. The national consultant should support the international Legal Expert in all his/her tasks. The national consultant will provide analytical, administrative, interpretation/translation supports to the international consultants and ADB Mission, assist in data collection and database management, and aid the International Legal Expert in compiling and summarizing the individual consultant reports into a comprehensive final TA report for the ADB Mission. In addition he/she should:

a) Help the International Legal Expert to identify and recommend, the required legal and regulatory framework as well as what kind of international standards and practices can be applied suitable to the environment in Laos so as to attract private participation in PPPs in infrastructure with particular focus on the education, health and agriculture sectors.

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b) Support the International Legal Expert to develop incentive based regulation with clear policies on government support

c) Support the International Legal Expert in developing sector specific regulations and guidelines for the Ministry of Agriculture, Education and Health and (any other key responsible agency)

d) Help in coordinating meetings with relevant local authorities e) Help conduct workshops as required, to help the key agencies understand the

implications of the suggested regulations and guidelines on private participation in infrastructure.

2. Two PPP Consultants for Health and Education Sectors (6 person months

each intermittent over a period of 12 months)

89. The expert/s should have a degree in Education/Health Care Management. He/she should be well versed in English and with local environment/systems and procedures applicable to the Education and Health System in Lao, PDR. The national consultant should support the international Education and Health Expert in all his/her tasks. The national consultant will provide analytical, administrative, interpretation/ translation supports to the international consultants and ADB Mission, assist in data collection and database management, and aid the International Experts in compiling and summarizing the individual consultant reports into a comprehensive final TA report for the ADB Mission. He/she should in particular:

a) Help the International Experts in reviewing the health and education infrastructure policy in Lao, PDR

b) Help identify areas for PPP c) Help assess private sector appetite for PPPs in the health and education sectors in

Lao, PDR d) Help to identify/develop pilot projects in the education and health sectors in Lao PDR e) Help in coordinating meetings with relevant local authorities f) Help conduct workshops as required, to help the key agencies understand the

implications of the Consultant’s recommendation on private participation in the education and health sectors.

3. Project Coordinator (24 person months, intermittent)

90. The project coordinator is expected to have at least 5 years practical experience in project administration/secretarial work, familiar with the systems of the Government of the Lao PDR and ADB. The coordinator will principally assist project administration with MPI, including arranging workshops and training programs and will provide administrative support to procurement of equipment under the project, administration of contracts, disbursement of funds and reconciliation of accounts. The coordinator will also assist with providing logistics support for the international consultants and the national consultants engaged through the consulting firm. The coordinator will also help liaise with ADB team and government counterparts. The coordinator will provide specific support to project management office (PMO) and strengthen existing secretarial services Specific scope of work will be:

a) Organizing meetings, preparing agenda and minutes of meetings upon request; b) Supporting the PMO office, ensuring adequate and timely provision of funding,

equipment and support; c) Supporting MPI in maintaining accounts for operating the PMO office and making

payments for all workshops/seminar expenses under the project and payment to

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consultants as approved by MPI and the ADB task manager. The administrator will establish a bank account solely for the purpose of making payments for PMO operations. Every month the coordinator will liquidate the funds, and will prepare and request advance payments on a three month basis;

d) Providing logistical and administrative support to regular and special ADB missions overseeing the Program.

91. In addition, the specialists will (i) assist the Team Leader and the international specialists in all aspects of their task within the terms of reference; (ii) under the guidance of the team leader, collect and analyze information, and make it available in English in an organized, readable form. Help the international team make available to the Government all reports and TA project outputs; (iii) conduct research on specific topics as required by the team leader and the international specialists; (iv) arrange and organize discussions and workshops, and help the team leader and the international specialists prepare materials for them, including translations of documents (if necessary) and interpretation of the discussions; (v) act as an interpreter in meetings and training sessions, help translate documents (if needed) and coordinate translation works to be contracted to others; (vi) Prepare copies of training materials, reserve the venue for training, and liaise with training participants and other resource persons and (vii) perform other task that may be assigned by the international team leader. N. Reporting and Monitoring Arrangements 92. The Team Leader, and the Individual Experts as required under the TOR will regularly provide written reports in English: (i) an inception report to include a comprehensive implementation plan to be submitted within 2 weeks after the project starts including log frame outlining the implementation schedule; (ii) regular progress reports every quarter; (iii) a mid-term report; (iv) draft final report (to be submitted two weeks before the end of consulting services); and (v) a final report reflecting comments by EA and ADB, to be submitted at the end of consulting services. The Team Leader will be responsible for preparation of the various reports. Specific timing and content of the reports will be discussed with EA, IAs and the ADB. The reports will be submitted to EAs and IAs and ADB, and will include an assessment of the outputs and activities, including performance indicators included in the Design and Monitoring Framework. The consultant’s team will ensure that baseline data for each component is gathered and monitored over time in the proposed Project. The team leader should provide monitoring and evaluation reports to the EAs and IAs for review by the Project Steering Committee and/or Project Management Units and/or Project Coordination Group, and ADB. The reports will be discussed with the EAs and the IAs and also with ADB. 93. In executing the terms of reference (TOR), the team leader will closely coordinate and liaise with MOHA – the EA and MOF, MPI, MAF, MOH, MOES and MONRE – IAs. The team leader will coordinate with development partners and the ADB Resident Mission in Lao PDR for specific tasks. The team leader will assist in procurement of goods and services under the project in accordance with ADB’s procurement policies. 94. The Team Leader will assist EAs to maintain separate project accounts and financial statements, in accordance with the provisions of the Grant Agreement and ADB Guidelines (Guidelines for the Financial Governance and Management of Investment Projects Financed by ADB, 2002) to facilitate annual audit by an auditor acceptable to ADB. In addition, the team leaders will assist MOF to prepare and submit semi-annual and annual reports to ADB, indicating progress made, problems encountered, and steps taken to remedy the problems, a program of activities, and expected progress during the implementation period. The reports will incorporate the project performance monitoring data and all relevant financial data.

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II. SAFEGUARDS

95. The project is C category with respect to environment, resettlement and indigenous peoples. With this category, it is expected that the project activities will likely to have minimal or no adverse environmental impacts, has no involuntary settlement impacts, nor have impacts on indigenous peoples. In general, ADB’s prohibited investment activity list will apply.

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III. GENDER AND SOCIAL DIMENSIONS

96. The Project is categorized as effective gender mainstreaming, with reference to the ADB Gender Guidelines.20

97. The Lao PDR has made persistent efforts to narrow gender disparities, but lags other countries. It ranked 115th of 157 countries in the 2007–2008 gender-related development index of the United National Development Programme. The 2010 gender inequality index ranks the Lao PDR 88th among 105 countries. It remains far short of achieving some key indicators on gender equality and women’s empowerment. Specifically, it is considered to be “off-track” for achieving MDG 3, gender equality and women’s empowerment by 2015, and “seriously off-track” for issues including (i) high rate of maternal mortality at 405 deaths per 100,000 live births;21

(ii) lack of access to reproductive health services; (iii) gender disparity at all levels of education; and (iv) limited access to training, financing, and opportunities for economic advancement. Moreover, inequalities persist along rural–urban lines, geographic areas—north, center, and south—and among ethnic groups. In 2008, 40% of the country’s 109,359 civil servants were women. Focused attention is needed in three key areas: health, education, and agriculture and natural resources. The institutional framework includes the Lao Women’s Union and the National Commission for Advancement of Women. NCAW is responsible for formulating and implementing national policy for the advancement of women and mainstreaming gender in all sectors, with units established across ministries and at provincial, district, and administrative levels, creating a broad network of gender focal points. However, NCAW lacks critical capacity, resources, and institutional support to carry out its mandate.

98. Gender-related activities have been mainstreamed in ADB’s continuing support through project-specific interventions in education, health, and agriculture and natural resources. In the district management system in particular, district planning still lacks gender integration and budget allocation for gender promotion. In view of this, the proposed capacity development project will build capacity for members of the Sub-Commission for Advancement of Women (SubCAW) in (i) building capacity for SubCAW network members, (ii) strengthening coordination, and (iii) strengthening information systems for NCAW and its SubCAW network. In addition, the project will include gender responsive planning and budgeting training in pilot districts in coordination with the Ministry of Home Affairs. 99. The Government will ensure that all Project activities are designed and implemented in accordance with ADB’s Policy on Gender and Development (1998).

20 ADB (2010) 21 Ministry of Health Statistics, 2009.

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IV. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Project Design and Monitoring Framework

100. The DMF will follow the DMF in the RRP.

B. Monitoring

101. Project performance monitoring The EA will monitor the Program implementation to achieve target indicators in the DMF and will report to ADB quarterly. The ADB will carry out joint program review missions at least twice annually. The EA and ADB will continue to engage in active dialogues throughout the Program implementation period.22

102. Compliance monitoring: The EA will monitor and ensure the compliance of grant assurances – policy, legal, financial, safeguards and others. All noncompliance issues, if any, will be updated in quarterly progress reports, together with remedial actions. Each review mission by ADB will monitor the status of compliance with grant assurances and recommend measures to tackle noncompliance issues.

103. Gender and social dimensions monitoring: The Government will ensure that all Project activities are designed and implemented in accordance with ADB’s Policy on Gender and Development (1998).

C. Evaluation

104. An inception mission will be fielded soon after the selection of consultants for project components are completed. At least 2 project review missions will be carried out annually. These will include: (i) performance of the EA, IAs, consultants and contractors. Within 6 months of physical completion of the Project the Executing Agency will submit a project completion report to ADB.23

D. Reporting

105. The Executing Agency will provide ADB with (i) semi-annual progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project account and the executing agency AFS, together with the associated auditor's report, should be adequately reviewed.

22 ADB's project performance reporting system is available at:

http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool 23 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-

Sector-Landscape.rar

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http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-Sector-Landscape.rar�

http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-Sector-Landscape.rar�

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E. Stakeholder Communication Strategy

106. Project preparation has been conducted with various agencies in the Government, including various line ministries and departments. A number of awareness raising, consultation and training workshops are planned throughout project implementation. Participation in project activities involved all IAs and agencies under the various components of the project.

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V. ANTICORRUPTION POLICY

107. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.24 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project.25

108. To support these efforts, relevant provisions are included in the grant agreement and the bidding documents for the Project. In particular, all contracts financed by ADB under the Project will include provisions specifying the rights of ADB to audit and examine the records and accounts of the EA, IAS and all contractors, suppliers, consultants, and other service providers as they related to the Project. ADB will disseminate ADB’s anti-corruption policy to the EA and the IAs.

24 Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 25 ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp

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http://www.adb.org/integrity/unit.asp�

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VI. ACCOUNTABILITY MECHANISM

109. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.26

The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.

VII. RECORD OF PAM CHANGES

110. The first draft of the PAM (dated 10 July 2012) has been prepared and agreed upon during the grant negotiation in August 2012. All revisions/updates during the course of the implementation should be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.

26 For further information see: http://compliance.adb.org/.

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